Te Kaunihera-ā-Rohe o Ruapehu Ruapehu District Council LONG TERM PLAN 2021-2031 Table of Contents Mayor and Chief Executives Foreword ...... 4 PART 1 – WHAT IS THE LONG TERM PLAN? ...... 6 The Long Term Plan ...... 7 Putting the Pieces Together ...... 8 Community Engagement and the LTP ...... 9 Consultation Document ...... 11 Community Engagement Outcomes ...... 12 Overview of Council’s Income and Expenditure ...... 13 Vision and Council Focuses ...... 14 Community Well-being Outcomes ...... 15 Spatial Plan ...... 16 Global Trends and Risks ...... 18 PART 2 – Council Activities ...... 23 Council Activities, Facilities, Assets and Community Services ...... 24 Facilities and Assets ...... 25 Land Transport ...... 26 Water Supply ...... 32 Wastewater (Sewerage) ...... 41 Stormwater & Flood Protection ...... 48 Solid Waste ...... 54 Recreational and Community Facilities and Community Property ...... 60 Community Services ...... 73 Community Support ...... 74 Leadership ...... 80 Regulation ...... 87 PART 3 – Planning Assumptions, Policies and Strategies ...... 94 Significant Assumptions & Population Projections 2021-31 ...... 95 Infrastructure Strategy ...... 149 Financial Strategy ...... 216 Significant and Engagement Policy (Summary) ...... 228 Revenue and Financing Policy ...... 229 PART 4 – Financials ...... 251 Funding Impact Statement ...... 252 Schedule of Rates for 2021/22 ...... 259 Rating Examples ...... 260

2 Financial Statements ...... 263 Statement of Comprehensive Revenue and Expense ...... 278 Statement of Changes in Net Assets / Equity ...... 279 Statement of Financial Position ...... 280 Prospective Cash Flow Statement ...... 282 Funding Impact Statement all of Council ...... 283 Cost of Support Funding Impact Statement ...... 285 Reconciliation to Financial Impact Statement to Comprehensive Income ...... 287 Other Disclosures Statement ...... 288 Additional Information or Comment...... 293 Audit Report ...... 294

3 MAYOR AND CHIEF EXECUTIVE’S FOREWORD Council is pleased to present its ten-year Long Term Plan for 2021-2031. Development of this Long Term Plan had a number of unique challenges most significantly due to the status of 3 waters (drinking, waste and storm) and the long tail of COVID-19 which still has some sting in it yet. COVID-19 impacted on the Long Term Plan in a number of areas including a higher, COVID-19 revised, Local Government Cost Index for planning, a drop in revenue at the i-SITEs and of key funders such as Waka Kotahi NZ transport agency, as well as providing funding opportunities which has allowed Council to increase levels of service in areas such as housing. Council needed to work extremely hard to bring the average rate increase down to the final 4.92% level for the 2021/22 year which reflects the increasing cost challenges posed by these and other issues. While we are unhappy that it is above our target rate guideline of 3.5% it is the minimum required to keep building on current momentum and support the development of our communities and their aspirations. There are a number of drivers which will determine individual rate demands notably being property revaluations and whether your property attracts water rates. Property revaluations saw significant jumps in average Ruapehu capital values with average rural values increasing by 25%, average commercial values by 31%, and average urban by 61%. The 'big ticket' item for this Long Term Plan however is the expenditure and associated debt required to bring the districts 3 waters systems in-line with the new government legislated standards. This saw water rates having the largest influence on individual rate demands with urban properties having an average rate requirement change of +7.84% whereas commercial properties were +2.55% and rural +1.77%. While the Government’s 3 Waters Reform Program is proceeding at pace, key decisions relating to the establishment of new multi-regional entities to take over water assets, and the information required to help us make the decision on the available options, will not be known until later this year. As a result, Council was required to consult on the basis of ‘business as usual’ - as if Council will continue to own, maintain and deliver water services into the future. This includes the water debt associated with meeting the Government’s mandated water quality standards which without any further funding assistance is projected to reach $65m by 2031. Despite there still being many unknown factors around 3 waters reform ratepayers have supported Council's accelerated capital water works strategy that will make Ruapehu compliant with the new water standards within five years. Under the current indications from Government we expect that by the next Long Term Plan review in 2024 a new water entity will have taken control of Council's water services and the associated debt. The other major drivers of new debt in this Long Term Plan are roading (15%) and township revitalisation (20%) that together with water will see total debt reach $100m. While this level of debt is extremely uncomfortable it should be seen as a ‘theoretical projection’ given the anticipated changes to 3 waters delivery. It is also worth noting that our debt covenant with the Local Government Funding Agency is for our total borrowing to be no more than 175% of our revenue and we remain within this for all ten years of the Long Term Plan. Support for increasing township revitalisation funding to $11m and Pride of Place Funding to $100,000 per annum came through strongly in submissions to the LTP. The townships that have enjoyed the benefits of redevelopment projects are keen to see this momentum continue while other townships are organising and developing plans. Communities can now be assured that there is funding available for their township and they have the freedom to work on their own plans at their own pace.

4 While Council did not have a specific question on roading in the Long Term Plan consultation we know that for many rural communities this is our most important area of expenditure. Waka Kotahi NZ have stated that COVID-19 has impacted road user revenue and have reduced their co-investment commitment to our planned road works program for the three-year (2021/24) period until the next Long Term Plan from $50.3m to $46.8m Despite the $3.5m reduction it is still a 22% increase on the 2018-21 funding period and includes provisional approval for replacement of the Ruapehu Rd and Mangateitei Rd rail over-bridges in Waimarino. This will require some reduction to land transport levels of service such as the new metal strengthening budget for regularly used forest roads which has been off-set in part by the increase in the Land Transport Rate on forestry owners. This Long Term Plan also sees an increase in levels of service in developing areas such as housing. While Council resolved that any housing initiatives should not be at the cost of increasing rates and putting a further burden on ratepayers it is a new work stream for staff. Engagement on the Long Term Plan highlighted that our community expects Council to continue playing a broader role in promoting their well-being in areas such as housing which are beyond what has been considered traditional core services. Meeting these expectations over the ten years of the 2021-31 Long Term Plan will be challenging however with the on-going support of our communities we believe this is possible. We look forward to continuing our journey to drive and support the development of safe, prosperous, sustainable rural communities that enhance the quality of Ruapehu life, and meet the needs of our present and future citizens and visitors to the district.

Don Cameron Clive Manley MAYOR JP CHIEF EXECUTIVE

5

PART 1: WHAT IS THE LONG TERM PLAN?

6 THE LONG TERM PLAN The Long Term Plan (LTP) is Council’s big-picture strategic document. It sets out Council’s priorities for the next 10 years, what it wants to achieve, how much it will cost, and how Council is going to pay for it. The first three years are covered in detail, the subsequent years are an overview. All of Council’s other strategies and planning documents must align with this Long Term (10 Year) Plan.

The Long Term Plan is a legal requirement. The content and process for producing it is set out in the Local Government Act 2002 (LGA). It takes about two years and multiple planning elements to arrive at the final LTP.

PHASE 1: PLANNING ASSUMPTIONS The LTP is based on a set of assumptions about changes in the District over the next decade. This includes changes to the population, visitor numbers, trends in environmental change, etc. See Council’s Planning Assumptions in Part 3 of this LTP.

PHASE 2: REVIEW OF EXISTING PLANS, STRATEGIES AND POLICIES The LTP process is undertaken every three years. Thus, the 2021-31 LTP is essentially a full-scale review of the 2018-28 LTP. The LTP itself, and all its supporting documentation, is reviewed in the light of Council’s updated planning assumptions.

PHASE 3: PUBLIC CONSULTATION Council engages with our stakeholders all the way through the process to find out what is important to them. However there is a formal period of consultation when Council releases a Consultation Document (CD) which presents the big issues facing Council and the District, options for resolving them and seeks community feedback in order to inform Council decision making. The public consultation period for this LTP took place from 26 March to 26 April 2021. Council received 148 written submissions and 26 people spoke to Council directly about their submissions at hearings held in May.

PHASE 4: DECISIONS AND ADOPTION Council takes into account all the community feedback that has been received during the engagement process when it makes its final decisions on the finances and projects for the LTP. The LTP must be adopted before the beginning of the next financial year, which is 1 July 2021. This LTP was adopted on 23 June 2021.

While Council needs to be responsive to changes in the economy, community priorities and asset health, it must also make sure it is a prudent steward of public money, and therefore plan at least for the next decade, knowing that some of the details may change. In the years between “Long Term Plan Years” any changes are reflected in the Annual Plan, a plan which details exceptions to what was forecast for that year in the LTP.

7 PUTTING THE PIECES TOGETHER

8 COMMUNITY ENGAGEMENT AND THE LTP

THE FORMAL CONSULTATION PERIOD FOR THE LONG TERM PLAN (LTP) RAN FROM 26 MARCH UNTIL 26 APRIL 2021 HOWEVER ENGAGEMENT WITH THE COMMUNITY HAD BEEN UNDERWAY FOR MANY MONTHS BEFORE THIS. THE PROCESS INVOLVED A RANGE OF ENGAGEMENT METHODS.

PRE ENGAGEMENT (AUGUST - NOVEMBER 2020) Feedback from the community was collected at community hui, via councils website and Facebook page, email or hard copy. All the information was collated and presented to Elected Members at a workshop held on 4 November 2020.

RADIO ADVERTISING Radio advertising ran throughout the pre-consultation phase and promoted the importance and relevance of the LTP in order to start raising awareness and interest.

COMMUNITY INTEREST GROUPS Council met with several community interest groups who sought further information about the issues facing the District and how Council could assist them with their community aspirations.

PRE ENGAGEMENT WITH MĀORI

After discussion with the Ruapehu District Māori Council, a suggestion was made to hold hui Marae. As a result, three hui were held at Paraweka Marae in Pipiriki, Raetihi Marae in Raetihi and Kauriki Marae in Taumarunui. The hui were positive in providing an opportunity for Council to gain an insight to the Māori perspective, and highlighted the importance of ensuring Council’s business going forward gives recognition to the economic, environmental, cultural, social priorities and aspirations for Māori.

The following issues were identified as key themes throughout the district:

ENVIRONMENTAL

Concerns around three waters and what the reforms from Central Government would look like. There were requests to Council for clean water management options and to protect the awa. Council was asked to clamp down on illegal dumping and to encourage more recycling and work towards reducing packaging coming into the district.

CULTURAL

Throughout the district there is a desire for council to focus on building relationships with iwi and working towards a collaborative approach. There is also desire for cultural centres to be established in Ohakune, National Park, Taumarunui and Raetihi.

SOCIAL

Ruapehu Communities are concerned with the difficulty to access services such as doctors and banks as organisations move towards centralisation and online service. This is exacerbated with the lack of internet and mobile connectivity areas of the district that are also experienced by communities. There was a strong focus for the continuation of township revitalisation and calls for sports centres in Taumarunui and Ohakune with an emphasis on youth.

9 ECONOMIC

Feedback was received on the lack of housing in the district and in particular the impact short term visitor accommodation adds to the housing crisis. Infrastructure maintenance was also at the forefront of communities, with calls to focus on the permanent population of the district’s needs.

CONSULTATION (MARCH 26 –APRIL 26/ 2021)

In alignment with the Engagement Strategy adopted by Council in 2020, consultation has been intentionally responsive and reflexive to community need throughout the LTP engagement cycle.

The Community Engagement approach was also framed to ensure outreach into key remote communities with consultation document drops off points arranged, mail outs and conversations undertaken as needed with key community organisations and gatekeepers. Schools were also kept informed as key connection points in remote communities.

Key stakeholder relationship meetings took also place on a community and issues based framing. This included but was not limited to:

• Formal stakeholder meetings e.g. Federated Farmers, Non-government Organisations, District Health Boards and real estate agencies • Business and community groups drop in’s • Community visits • Email campaign – regular updates, meeting notifications, meeting follow up per geographic and stakeholder groups e.g. Iwi, education, real estate agents, communities, and submission processes. Email newsletters went out to approximately 500 people three times ( pre meeting, meeting updates with consultation materials and post meeting update on submissions process. across the campaign cycle) • Facebook campaign on key issues • Phone calls to key community members

To ensure outreach to non-resident rate payers and those that could not attend physical meetings all seven face to face meetings held across the district have been live streamed on Facebook.

Physical meetings were held and live streamed via Facebook in:

• National Park • Ohura • Waiouru • Taumarunui • Raetihi • Owhango • Ohakune

This approach has been highly successful with the Taumarunui meeting watched over 1,500 times. Smaller meetings have typically hit around 400-700 views.

Live streamed meetings were monitored and online questions feedback in to the LTP consultation hui, which guided by a presentation is conversational and responsive in nature. Comments on live streams and LTP related posts have been feedback into the consultation process.

Captioning was also utilised at some meetings to reach those with hearing difficulties.

This significantly increased outreach and engagement throughout the LTP consultation period.

10 CONSULTATION DOCUMENT

A consultation document (CD) was produced, discussing the “big issues” facing Council and the District in the coming decade. It outlined the challenges, options for addressing them and the implications of each of those options.

LOCALISED COMMUNITY MEETINGS Seven LTP community meetings were held in National Park, Ohura, Taumarunui, Owhango, Raetihi, Ohakune and Waiouru - each town with its own aspirations, issues, perspectives and concerns. All of these meetings were live streamed on Facebook to ensure participation and increase outreach to non- resident ratepayers.

In addition to community based meetings, informal community catch ups with opportunities to go through issues raised in consultation documents was undertaken across the district over the first two weeks of the consultation cycle.

Consultation documents were also left at key community hubs and with organisations to ensure document reach into the more remote communities in the district. Around 7000 A4 flyers summarising the LTP issues were distributed to every household including to out-of-District ratepayers and freely throughout the community. As well as the flyer, Council provided summary pages on the individual consultation issues. These were used widely in all forms of conversation with the community.

NEWSPAPER & RADIO The consultation was supported by advertising in local papers and local radio stations. The summary pages of the CD were utilised for newspaper advertising alongside key focus articles, and key Council staff spoke on the CD in further detail on the local radio station.

WEBSITE The website was an important platform for making all the consultation material easily available, as well as the large amount of supporting documentation that goes into the LTP. The online submission form was well utilised by submitters, facilitating a streamlined submission process.

ENGAGEMENT WITH MĀORI Marae based meeting were valuable in the pre engagement process as this demonstrated the importance of needing to participate alongside the community in the formal process of Long Term Plan consultation. This was reflected in the number of Māori who attended the community meetings.

Council also ensured Māori organisations and their respective representatives had access to the consultation documents, supporting materials and information about the submission process and options.

11 COMMUNITY ENGAGEMENT OUTCOMES

Council asked for feedback on 11 issues, and Council made the following resolutions about the 11 consultation issues:

Issue Council Decision 3 Waters Program: That Council maintains current pace of the 3 How should council manage 3 waters program waters program to meet new legislative water given the new national compliance requirements? standards that is anticipated to come into force within the next five years.

Town Revitilisation That council increases our level of investment How much should council budget for township in township revitilisation to $11m and fund the revitalisation? major projects within the first five years of the LTP. Maori Engagement That Council Funds Māori capacity to engage How should Council fund Māori Engagement? with Council via Relationship Agreements with contributions from Government. Housing That Council continues to facilitates, advocate What should Council do to address the housing and partners with others. crisis in the district?

Non-Commercial Visitor Accommodation That Council does increase the short term Targeted Rate accommodation rate from $200 to $300. This rate will apply from 1 July 2021. Land Transport Forestry Targeted Rate That Council increases the Land Transport Rate from 200% to 300%, instead of the 400% rise initially proposed. Warm your Whare-New Opt in Targeted Rate Council will establish an opt in scheme to support home insulation for rate payers in the district.

Shop Verandah Replacement- New Opt In Council will establish an opt in scheme to Targeted Rate support property owners to bring shop verandah up to earthquake code and beautify them at the same time. Council will establish an Environmental Environmental Resilience Rate- New Target Resilience rate to pay for meeting requirements Rate of Government Environmental Policy. Changes to the Definition of a Separately Used Council will amend the definition of what and Inhabited Portion (SUIP) constitutes a Separately Used and Inhabited Portion (SUIP) for rating purposes. New Rate Remission Policy: UAGC (Uniform Council will establish the new rate remission for Annual General Charge) properties that have more than one SUIP which is unused or only used, as the extension of the main house as an extra bedroom.

12 OVERVIEW OF COUNCIL’S INCOME AND EXPENDITURE

The following graphs show the sources of Council revenue and how the revenue is spent.

COUNCIL FUNDING SOURCES Other General Rates & $287,000 Uniform Annual General 1% Carge (UAGC) Capital Subsidies & $13,157,000 Grants. 24% $17,957,000 33%

Targeted Rates $12,369,000 Operation subsidies & 23% Grants $7,079,000 Fees and Charges 13% $3,110,000 6%

OPERATIONAL EXPENDITURE BY ACTIVITY (000) Water $4,207 11% Solid Waste $2,234 6% Land Transport Waste Water $15,586 $2,793 39% 7%

Regulation $3,109 8% Stormwater $1,050 3%

Community Support $3,995 Leadership 10% $2,116 Community Facilities 5% $4,470 11%

13 VISION AND COUNCIL FOCUSES

14 COMMUNITY WELL-BEING OUTCOMES

COUNCIL HAS STATED ITS CORE PRIORITIES IN THE FORM OF FIVE COMMUNITY WELL-BEING OUTCOMES. THESE OUTCOMES ARE COUNCIL’S “TRUE NORTH” FOR PLANNING AND DECISION- MAKING. EVERY PROJECT THAT COUNCIL UNDERTAKES AND EVERY DOLLAR IT SPENDS LINKS BACK TO AT LEAST ONE - BUT OFTEN SEVERAL - OF THESE OUTCOMES. THEY ARE A KEY WAY WE MEASURE SUCCESS.

15 SPATIAL PLAN

THREE MAIN ROLES OF RUAPEHU DISTRICT IN NEW ZEALAND

1. A centre of outdoor adventure, sport, a place to relax in nature and a visitor destination. 2. Rural areas for sustainable food production and diversification of the primary sector. 3. A desirable place to live with a unique offering, providing people with different lifestyle choice

PRINCIPLES

• Fairness • Long Term benefits- Sustainability

• Affordability • Community at Heart • Resilience

TOP THREE DISTRICT SHAPING MOVES 1. Strategic focus on housing, employment, town centres and infrastructure 2. Caring for rural communities and the environment 3. Collaborative partnership with Tangata Whenua

REVITILISATION PLANS & RURAL COMMUNITIES AND COLLABORATIVE PROJECTS ENVIRONMENTAL PROJECTS PARTNERSHIPS • Ruapehu District Housing • Bridge replacement • Council to continue Strategy • Create and extend cycle- strengthening relationship • Raetihi Integrated Council ways with local Iwi/ Hapū. Service Centre & • Advocating on increasing • Council currently Community Hub necessary service developing the Liveability • Raetihi Revitilisation Plan accessibility (e.g. health study which will be used • Ohakune Spatial Plan services, transport services as a foundation to create a • Taumarunui Future etc.) for our rural wellbeing strategy Housing and Community communities Plan • Significant investment in • National Park Community three waters upgrades Plan • Rangataua Community Plan

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17 GLOBAL TRENDS AND RISKS

As a member of the global community, our future plans will be impacted by global issues, therefore planning must consider risks and opportunities in the existing and likely future operating environment. The known major sources of risks that could impact on achieving are:

• Climate change • Disasters • Legislative change • Demographic change • Cyber crime • Global conflict • Global economic downturn • Disruptive Technologies

The impacts of these sources of risk on Council are briefly discussed below. The likelihood of the associated risks happening during the term of the LTP cannot be reliably assessed. Minimal estimation for the financial impacts have been included in budgets in the LTP.

CLIMATE CHANGE On average the world is about one degree warmer than the pre-industrial era, as a consequence, New Zealand is experiencing more frequent, and more extreme weather events. In response, Central Government declared a climate change emergency in December 2020, taking a bold step towards future proofing the country from the inevitable impacts of climate change. In efforts to move the country towards a more resilient future, Central government passed the Climate Change Response Amendment Bill to create pathways for adaptation. At a local level, local authorities are required and expected to develop climate change strategies to lead their district towards a sustainable future.

To prepare for this, Council is in the process of developing a climate change strategy, starting with establishing an understanding of the unique risks climate change poses to Ruapehu’s natural and built environment.

Key climate change impacts include:

• Flooding - increased frequency and • Loss of biodiversity magnitude of flood events . Growth of new pests and weeds . Animal health issues such as greater

heat stress, eczema and parasites • Increased pressure on health services • Very heavy rainfall events (weather from: bombs . Rise in mental health issues as

people attempt to manage change . Increase in heat related health complications and sub-tropical disease brought on by increasing temperatures • • Increased likelihood of drought and Fewer frosts and snowfall but with possible extreme events forest fire • • Increased likelihood of high Reduced tourist numbers temperatures

• Low sustained river flows ad pressure on grounded water

Climate change is expected to impact Council’s ability to deliver services to their community in both the financial and physical terms. Council believes one of the best ways to increase community resilience is by building / maintaining climate resilient infrastructure that supports a strong, viable, diversified

18 economic base. Council is in the process of developing strategies to guide them towards building climate change resilience into infrastructures to maintain and improve their community’s physical, social, environmental and economic conditions to create a more resilient community in an effective and efficient way.

DISASTERS

Natural disasters are occurring more often and with greater intensity, from flooding, extreme snow events and even tornados.

The key impacts include: • Contamination of water supplies and the • Damage to infrastructure natural environment • Increased costs • Disruption to people’s lives

• Fewer visitors • Effects on businesses

Council designs builds and upgrades infrastructure with resilience against emerging threats in mind. It also maintains an effective capability to address emergencies.

TOURISM Due to COVID-19, international tourist numbers have dropped significantly in the past year (2020), leaving tourist reliant industries low on business. If the border does not open, then the next decade will force communities built around tourism to find new avenues of income, presenting a new opportunity for investors. However, if tourism resumes, then these communities will continue to expand to accommodate new businesses and people1.

1 (Ministry of Business Immigration and Employment, 2020)

19 LEGISLATIVE CHANGE

NATIONAL Government’s responses to societal demands has imposed significant additional duties on local authorities. In most cases, this happens without an associated funding stream. Recent examples include three water changes, and climate change initiatives. Council maintains good awareness of potential legislative change and collaborates in advocating for practical change. Ultimately however, Council is a creature of statute and must comply with the law.

INTERNATIONAL LEGISLATIVE CHANGE- GLOBAL COMMITMENTS New Zealand is committed to a number of global and bilateral agreements that imposes legislative requirements onto local government, which impact core functions of councils. An example of this is the Carbon Zero bill that was born out of New Zealand’s commitment to reduce global emissions. As a result, local authorities are expected to develop their own climate change strategy and plans on how to reduce their carbon footprint. Other climate change related commitments include the United National Convention on Climate change (Treaty) and the Kyoto Protocol.

The key impacts include:

• Educating staff and contractors • Process and asset design • Increased capital and on-going cost • Community resistance to change

• Rise in cost of living from the flow on affect from adaptation costs

ENGAGEMENT WITH MĀORI The Local Government Act 2002 (LGA) provides for Māori to participate in Council’s decision making processes and requires Council to foster the development of Māori capacity to ensure that this is effective, this also includes its obligations to the principles of the Treaty of Waitangi. Other statutory obligations to Māori are further acknowledged in the Resource Management Act 1991 and a number of Treaty settlements statues.

Council acknowledges its statutory obligations to Māori and is committed to building capacity to encourage greater participation, and ensure engagement is meaningful and effective. In 2009, Council formally appointed the Ruapehu District Māori Council as a platform to allow for this. Representation on the Ruapehu District Māori Council is made up of various Iwi and Hapū, and regular hui are held over a six to eight weekly cycle. In total, the number of hui held on average per year is about seven. During this time, Members have established a Strategic Development Plan and signed a Memorandum of Understanding with Council.

With the progression of Treaty settlements over recent years, Iwi and Hapū have sought to review their representation on the Ruapehu District Māori Council, which has resulted in some indicating a preference to have direct relationships with Council, rather than engaging in a collective forum. Council recognises that this is an evolving space and acknowledges that it may be timely to look at establishing other relationship arrangements, for example co-governance and co-management structures that are a better fit for Māori.

To do this however, Council recognises the need to resource the capacity of this work and is committed to doing so. At an operations level, regular hui are being held with various Iwi representatives, and Council staff anticipate that these hui will extend to all Iwi and/or Hapū authorities across the district in the near future. The hui have been mutually beneficial, as this has enabled Council to inform Iwi on matters that are of specific interest, and as a result, this has enabled Council to receive feedback in a

20 timelier manner. Council is also working alongside various Iwi and Hapū on a number of community projects happening across the district.

Council will continue to support Iwi pre and post Treaty settlements and is committed to strengthening relationships going forward. Council acknowledges the importance of strengthening relationships with Māori, as this is a means to enhance communications, provide better opportunities to enable active participation in its decision making processes, and ensure their interests are considered across the day to day business of Council.

DEMOGRAPHIC CHANGE The rising cost of living in city centres and the threat of climate change is most likely to increase the population in the district over the next 10 years. As part of the work to reduce national carbon emissions, there may be a move to decentralise industrial hubs across the country to encourage people living in over-populated areas to move. This is a welcomed change, as it will bring more opportunities for town revitalisation, however, there is the risk that it will increase cost of living, which may further disenfranchise the existing underclass community.

There is also the possibility of demographic change by way of climate change relocation, both internally and externally. Increasing population may also mean increase in diversity, this is a good thing for community, but it may also cause social tensions.

The key impacts include providing for the needs of:

• An increasingly aged population e.g. • Those so deprived that they cannot wider footpaths afford to move • Increase demand on existing health • Increased market opportunities services (employment opportunities) • Housing demand

GLOBAL ECONOMIC DOWNTURN Covid 19 has had a severe negative impact on the global (and national) economy. Early estimates predicated that, should the virus become a global pandemic, most major economies will lose at least 2.4 percent of the value their gross domestic product (GDP) over 2020, leading economists to already reduce their 2020 forecasts of global economic growth down from around 3.0 percent to 4.5 percent. Since then, global stock markets have suffered dramatic falls due to the outbreak2.

The key impacts include:

• New Zealand GDP falls in 2020 and • Rising NZ exchange rate growth remains subdued for some time • Increase economic uncertainty • Fewer international visitors • Rising interest rates • Increase rate of childhood poverty rates • Increasing unemployment and unaffordability

2 (Statista, 2021)

21 TECHNOLOGICAL CHANGE Technology evolves at an expedient rate, and it is changing the way society is organised and structured. Technological innovation can positively transform the way people work, learn and socialise, but also brings with it unique threats to established institutions.

The key impacts include:

• Training staff and contractors • Cyber crime • Cyber threats • Engagement with stakeholders

Cyber-crime, also known as technology enabled crime, electronic crime, e-crime or online crime, refers to criminal activity that involves the Internet, a computer, smartphone or other electronic devices. Cyber- crime covers a wide range of incidents, from pure cyber-crime where computers are the target (for example computer intrusions), through to cyber-enabled crime where the technology is used to assist in committing a crime. Most crimes now have a technology component. The key impacts include:

• Business disruption • Loss of personal information

• Cost • Reputational damage

ENERGY Where and how energy is sourced is slowly changing, governments and organisation around the world are moving towards adopting low carbon/ renewable sources of energy, and while New Zealand has the third highest rate of renewable energy, 60% of our energy still comes from fossil fuels. Transitioning the country away from fossil fuels presents both risks and opportunities for local communities.

The key impacts include:

• Industries heavily reliant on fossil fuels may be closed down . Affecting communities at large who depend on it for employment . We may see migration from these towns to other parts of the country • Potentially growth opportunities for communities rich in ‘renewable resources’ • Healthy natural environment

22 PART 2: COUNCIL ACTIVITIES

23 COUNCIL ACTIVITIES, FACILITIES, ASSETS AND COMMUNITY SERVICES

REGULATION COMMUNITY FACILITIES

• Building Services • Cemeteries • • Compliance Community Halls • Parks and reserves • Environmental Health • Public Toilets • Alcohol Licensing • Administration and library buildings • Resource Management • Social Housing LEADERSHIP INFRUSTRUCTURE

• Governance • Land Transport

 Council • Water supply  Community Boards • Wastewater • Strategic Development • Stormwater/Flood Protection  Economic Development • Solid Waste  Business Development

 Iwi Development

 Policy Development

 Youth Development

COMMUNITY SUPPORT

• Emergency Management

• Library Services

• Regional Tourism Organisation

• I-Sites

• Community Services

24 FACILITIES AND ASSETS

THIS GROUP OF ACTIVITIES PROMOTES THE COMMUNITY WELL-BEING OUTCOMES THAT MAINLY TARGET SOCIAL, CULTURAL, ENVIRONMENTAL AND ECONOMIC OBJECTIVES.

These activities aim to provide services to the community, while minimising the impact that the community’s activities and lifestyles have on the natural environment.

Facilities and Assets activities include Land Transport, Water Supply, Wastewater, Stormwater and Flood Protection, Solid Waste and Community Property, Recreation and Community Facilities.

Maintaining the environment and its natural resources are essential to the welfare of the community. For example, with good quality roading and reliable and safe drinking water supplies, the economy will grow and prosper, produce from the farming community can be safely and efficiently transported out of the District, visitors and tourists can easily visit the District and retailers have a way of replenishing stock that is sold to customers.

Horizons Regional Council and RDC must work to ensure that the negative environmental effects of the community’s activities are managed in a sustainable manner.

Supplying water, wastewater treatment, managing stormwater and flood protection and waste management and minimisation are all important to the wellbeing of the community. They also have effects on the social and cultural aspects of the community.

The activities in this group are all subject to provisions of the Resource Management Act 1991, Local Government Act 2002, Land Transport Act 1998, Public Works Act 1981 and a number of other Acts (including relevant Amendment Acts), plans and directives. Council must comply with resource consent conditions to operate essential community infrastructure. This involves monitoring and compliance.

25 LAND TRANSPORT

THE LAND TRANSPORT ACTIVITY PROVIDES FOR THE MAINTENANCE, RENEWAL AND DEVELOPMENT OF LOCAL PUBLIC ROADS, KERBS AND CHANNELS, BRIDGES, STREET LIGHTING AND FOOTPATHS FOR THE WHOLE DISTRICT. STATE HIGHWAYS ARE MANAGED BY WAKA KOTAHI NEW ZEALAND TRANSPORT AGENCY (NZTA).

RATIONALE The Land Transport activity provides road and pedestrian infrastructure that allows for the safe, reliable, efficient The district land transport network and effective movement of vehicles and people. Roads consists of: are essential infrastructure for both community and economic development. • 488km of sealed roads • 847km of unsealed road • 340 bridges and large COMMUNITY WELL–BEING OUTCOMES culverts • 70km of footpaths • 1,334 street lights

Significant projects included in our budget that will enable Council to achieve these outcomes are:

Infrastructure Strategy Major Total ($) Growth Renewal LOS Year Capital Projects B297 Matahiwi Track Suspension 3,476,516 10% 90% 1 bridge upgrade1 Bridge Renewals 8,365,858 85% 15% 1-10 Low Cost Low Risk SPR 5,220,000 20% 80% 1-10 Low Cost Low Risk LR 10,928,239 23% 77% 1-10 Pavement Rehabilitation 27,584,730 85% 15% 1-10 Sealed Road Surfacing 17,604,567 100% 1-10 Unsealed Road Metaling 10,559,570 100% 1-10

SIGNIFICANT NEGATIVE EFFECTS There are significant negative effects associated with the provision of a roads service including loss of landscape amenity values, increased erosion, stormwater and flooding, runoff, noise, dust, vehicle emissions and traffic dangers.

Council mitigates many of these effects through provisions in its maintenance and improvement contracts. Council also supports this approach by inspections of road conditions, regular reporting by its contractors, audit of contractor performance and responding to public notification of road condition problems.

Council aims to achieve dust suppression by the use of appropriate maintenance aggregates and maintenance techniques such as the use of water suppression at work sites and seal extension on selected sites in urban areas. Erosion and sedimentation during routine road works are minimised using industry controls such as sediment filters and traps with disposal and fill sites located no closer than 20 meters from riparian margins.

26 Council’s Land Transport Bylaw and Policy support the protection of its road network by regulating the behavior of people who impact on road conditions.

CHANGES SINCE CONSULTATION PERIOD Council’s roading programme is mostly subsidised by Waka Kotahi NZ Transport Agency. Council put its bid into Waka Kotahi in parallel with the consultation period and received advice of it’s indicative allocation for the 2021/24 period at the end of May 2021 with a total reduction of $3.5M in maintenance and renewal over the three years. Council has reduced budget to match, reducing funding in work such as bridge painting, pavement rehabilitation, reseal lengths, metal strengthening and minor events. While the total funded is higher than the previous 3 year block, any increase will partly be taken in contracted cost fluctuations.

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27 STATEMENT OF SERVICE PROVISION – LAND TRANSPORT Community Well-being Safe, healthy communities: Outcome(s) • Core infrastructure endeavours to keep pace with changing demand. • Excellent standards of safety and welfare are promoted and respected. Level of Service • Roads are managed to an acceptable level and the road network is available when required. • The programmed improvement works are completed. • Roads damaged by emergency events are made safe promptly. • The safety of the land transport network is acceptable to users. • Supporting road safety activities promoted by Horizons Regional Council. Key Performance Actual 2019/20 Annual Plan Target 2021/22 Target 2022/23 Target 2023/24 Target 2024-27 Target 2027-31 Indicator(s) 2020/21 THE SAFETY OF THE LAND TRANSPORT NETWORK IS ACCEPTABLE TO USERS The change from the Not achieved. Target for Target for Target for Target for Target for Target for previous financial year in the Increase of 2. reducing the reducing the reducing the reducing the reducing the reducing the number of fatalities and There were number of number of number of number of number of number of serious injuries on the local three serious serious serious injuries serious injuries serious injuries serious injuries serious injuries road network, expressed as and no fatal injuries and and fatalities and fatalities and fatalities and fatalities and fatalities a number. crashes in fatalities ≥1 ≥1 ≥1 ≥1 ≥1 ≥1 2019/20 compared with one in 2018-19. ROADS ARE MANAGED TO AN ACCEPTABLE LEVEL AND THE ROAD NETWORK IS AVAILABLE WHEN REQUIRED The average quality of ride Achieved 92% Target level of Target level of Target level of Target level of Target level of Target level of on a sealed local road Analysis shows smooth travel smooth travel smooth travel smooth travel smooth travel smooth travel network, measured by that overall exposure exposure exposure >87% exposure exposure exposure smooth travel exposure (2). vehicle kilometer >87% >87% >87% >87% >87% travelled (VKT) is lower in 19/20 compared with previous year. However, there was a 10% increase in VKT numbers travelling on smooth roads in the Rural <1000 vehicle per day category The percentage of the sealed Not achieved – ≥7.5% ≥7.5% ≥7.5% ≥7.5% ≥7.5% ≥7.5% local road network that is 5.3%. ≥37km out of ≥37km out of ≥37km out of ≥37km out of ≥37km out of ≥37km out of resurfaced. 25.5km out of 486km (3) 486km 486km 486km 486km 486km 486km

28 Community Well-being Safe, healthy communities: Outcome(s) • Core infrastructure endeavours to keep pace with changing demand. • Excellent standards of safety and welfare are promoted and respected. Level of Service • Roads are managed to an acceptable level and the road network is available when required. • The programmed improvement works are completed. • Roads damaged by emergency events are made safe promptly. • The safety of the land transport network is acceptable to users. • Supporting road safety activities promoted by Horizons Regional Council. Key Performance Actual 2019/20 Annual Plan Target 2021/22 Target 2022/23 Target 2023/24 Target 2024-27 Target 2027-31 Indicator(s) 2020/21 Maintain the sealed roads to Achieved <5.5 <5.5 <5.5 <5.5 <5.5 <5.5 a standard that allows <5.5 Q1 – 3.6 defects/km defects/km defects/km defects/km defects/km defects/km defects/ km/quarter. Q2 – 5.0 /quarter /quarter /quarter /quarter /quarter /quarter Q3 – 4.7 Q4 – 4.9 Maintain the unsealed roads Achieved <5.5 <5.5 <5.5 <5.5 <5.5 <5.5 to a standard that allows Q1 – 3.7 defects/km defects/km defects/km defects/km defects/km defects/km <5.5 defects/ km/quarter. Q2 – 3.7 /quarter /quarter /quarter /quarter /quarter /quarter Q3 – 4.9 Q4 – 4.8 The percentage of footpaths Achieved 90% of 90% of network 90% of network 90% of network 90% of network 90% of network within the district that fall 99% of footpaths network to be to be in average to be in average to be in average to be in average to be in average within the level of service or are in average or in average condition or condition or condition or condition or condition or service standard for the greater condition, condition or greater & not greater & not greater & not greater & not greater & not condition of footpaths that is 1% are in poor greater & not more than 5% more than 5% more than 5% more than 5% more than 5% of set out in Council’s asset condition more than 5% of network in of network in of network in of network in network in Poor management plan of network in Poor condition Poor condition Poor condition Poor condition condition Poor condition The percentage of customer Not achieved ≥90% ≥85% ≥85% ≥85% ≥85% ≥85% service requests relating to 85% roads and footpaths to which Achievement of Council responds within the this target is a time frame specified in the focus for the land LTP. transport team for 2020/21 Notes: 1 Smooth travel exposure is reported annually. The two inputs are Road Roughness, which is measured two yearly, was last completed in November 2019 by Shaw’s Consulting Services Ltd. Vehicle Kilometers. Travelled (VKT) are continually updated during the year. 2 A defect constitutes potholes on sealed roads, unsealed shoulders on sealed roads, corrugations on unsealed roads, damage to bridges, blocked drain holes and culverts, overgrown vegetation, and damaged running boards and traffic signs. a) The accuracy of these have not been verified by Council. The information reported on is collected by Council’s Professional Services for Land Transport consultants GHD. b) The coverage of the roads network inspected during the year is aimed at 100%. In 2019/20, 78% of the network roads were inspected due to the lockdown in March and April. c) Defects are calculated by the number of defects / number of kilometres audited over the three months in the quarter. d) Each road should be inspected at least once a year. 3 The request for service targets can be found in the Asset Management Plans.

29 FUNDING IMPACT STATEMENT - LAND TRANSPORT

Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan

20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding

General rates, uniform annual general charges, 1,593 1,573 1,671 1,726 1,853 1,910 1,978 2,042 2,107 2,173 2,240 rates penalties Targeted rates 3,716 3,671 3,898 4,028 4,323 4,456 4,615 4,765 4,915 5,071 5,226 Subsidies and grants for operating purposes 5,512 6,741 7,140 6,911 7,760 8,002 8,249 8,504 8,767 9,039 9,310 Fees and charges 131 168 173 179 185 190 196 202 209 215 222 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement 141 146 151 156 161 166 171 176 182 187 193 fees, and other receipts Total Operating Funding (A) 11,093 12,299 13,033 13,000 14,282 14,724 15,209 15,689 16,180 16,685 17,191

Applications of Operating Funding Payments to staff and suppliers 8,542 9,757 10,332 10,197 11,401 11,747 12,102 12,466 12,842 13,229 13,622 Finance costs 383 242 310 325 373 436 514 595 674 756 846 Internal charges and overheads applied 301 324 351 376 381 397 422 426 437 452 453 Other operating funding applications ------Total applications of operating funding (B) 9,226 10,323 10,993 10,898 12,155 12,580 13,038 13,487 13,953 14,437 14,921

Surplus (deficit) of operating funding (A-B) 1,867 1,976 2,040 2,102 2,127 2,144 2,171 2,202 2,227 2,248 2,270

Sources of capital funding

Subsidies and grants for capital expenditure 7,057 13,757 8,524 8,012 7,346 7,487 7,770 8,667 8,197 8,451 8,814

30

Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan

20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Development and financial contributions 16 24 25 25 26 27 28 29 30 31 32 Increase (decrease) in debt 878 2,430 898 531 887 1,599 1,584 1,340 1,105 1,233 1,290 Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) 7,951 16,211 9,447 8,568 8,259 9,113 9,382 10,036 9,332 9,715 10,136

Applications of capital funding Capital expenditure - To meet additional demand 50 53 55 57 59 61 90 356 66 68 70 - To improve the level of service 1,928 6,685 3,173 3,004 1,977 2,559 2,586 2,291 2,116 2,181 2,372 - To replace existing assets 7,710 11,283 8,096 7,446 8,201 8,492 8,737 9,455 9,245 9,586 9,840 Increase (decrease) in reserves 130 166 163 163 149 145 140 136 132 128 124 Increase (decrease) of investments ------Total applications of capital funding (D) 9,818 18,187 11,487 10,670 10,386 11,257 11,553 12,238 11,559 11,963 12,406

Surplus (deficit) of capital funding (C-D) (1,867) (1,976) (2,040) (2,102) (2,127) (2,144) (2,171) (2,202) (2,227) (2,248) (2,270)

Funding Balance ((A-B)+(C-D)) ------

31 WATER SUPPLY

THE PURPOSE OF THE WATER SUPPLY ACTIVITY IS TO SUPPLY SAFE DRINKING WATER TO THE COMMUNITIES OF THE DISTRICT. A SAFE WATER SUPPLY IS ESSENTIAL TO RUN HOUSEHOLDS AND BUSINESSES AND MAINTAIN PUBLIC HEALTH. COUNCIL IS COMMITTED TO PROVIDING A WATER SUPPLY SERVICE THAT MEETS THE NEEDS OF THE COMMUNITY.

Council is responsible for the provision and management of six water supply schemes at National Park, Ohakune, Ohura, Owhango, Raetihi and Taumarunui. A total of 211.5km of pipes make up the reticulation network plus 5 pump stations located across the district. In Waiouru, Council owns and operates the water supply network outside the Army base and purchases the potable water from the New Zealand Defence Force. Council has also managed the water services for Whakapapa village on behalf of Department of Conservation since 2015 (but does not own the assets).

RATIONALE Water supply is perceived by communities to be one of the essential services Council supplies. Council is required by law to assess the need and provision of water services, and to retain its water supplies. It also has a duty to improve, promote and protect public health. Water supplies can be closed or transferred with the agreement of local communities.

There have also been significant legislation and policy changes that will impact the wastewater activity including the 3 water reforms, more freshwater management direction, zero carbon bill and climate change considerations over the last three years. There is now a new crown entity Taumata Arowai to regulate drinking water and Water Services. Further legislation and regulation changes The water supply network is made up are expected with proposed changes to the Resource of a mix of assets: Management Act. • Head works, surface water

sources, intake weirs and Council also has obligations under the Horizons One pipelines to treatment plants. Plan regarding the way it delivers and manages water. • Treatment plant including raw

water pumps, clarifier, filters, COMMUNITY WELL-BEING OUTCOMES main pumps and chemical dosing pumps. • Water storage including reservoirs and pipelines. • A piped network including pipelines, valves, hydrants, water meters, service connections and pump stations.

Significant projects included in our budget that will enable Council to achieve these outcomes are: Infrastructure Strategy Major Capital Growth Renewal LOS Total ($) Year Projects % % % National Park WTP: New Reservoir 525,800 15 85 2, 4-5 National Park WTP: Plant Upgrade 1,274,200 15 85 2, 4-5 Ohakune Water Networks: Water Main 3,953,902 100 1-5 Replacement Ohakune Intake: Raw Water Delivery 2,200,000 15 85 3 and 5 Pipework Ohakune WTP Reservoirs 1,000,000 15 85 1 Ohakune WTP: Plant Upgrade 3,512,988 15 85 1 Ohura WTP: Plant Upgrade 1,250,900 100 1-2

32 Infrastructure Strategy Major Capital Growth Renewal LOS Total ($) Year Projects % % % Owhango WTP: New Reservoir 874,900 100 3 and 5-6 Owhango WTP: Plant Upgrade 2,525,100 100 3 and 5-6 Raetihi Additional Reservoir 700,000 7 93 1-2 Raetihi Water Networks: Water Main 3,597,942 100 1-7 Replacement Taumarunui Water Networks: Gold Road 497,400 100 1 Watermain Replacement Taumarunui Water Networks: Water Main 5,829,767 100 2-9 Replacement Taumarunui Water Networks: Hakiaha St 2,596,700 100 1 Watermain Replacement District Wide Water: Water Meter Installation 1,758,500 10 90 3-4

SIGNIFICANT NEGATIVE EFFECTS The provision of water supply services can result in negative environmental and cultural impacts on waterways.

Council use of waterways has an opportunity cost to others through reducing the amount of water that may be used by others, eg, commercial or industrial businesses and farms. This may have a detrimental economic impact on those businesses. Council mitigates these effects by drawing water to an agreed level that meets resource consent conditions. These conditions include limiting supply as set out in the One Plan. Promoting wise water use by all and reducing leakage in the reticulation network.

Failures in treatment or reticulation can have significant health effects such as what happened in Havelock North. The loss of water supply is disruptive to our communities and can effect whole communities and individual property owners.

Taumata Arowai (the new regulator) has requirements with a strong emphasis on increased monitoring of raw water through the treatment process to the customer. Council has bacterial compliance at all plants and is now focusing on delivering protozoal compliance and renewing failing pipeline. Investment in new infrastructure and compliance costs will be significant for developers and businesses along with individual households. There will be continued new government legislation, policy and regulations.

The government’s announcement of the formation of centralized three waters entities to deliver services will impact how these services will operate. It is not yet clear but community affordability remains a high risk.

Climate change predictions are that extreme weather events will occur more frequently. Rainfall events carry sediment which makes rivers dirty which reduces the water quality in the river. Dirty water takes longer to treat and therefore reduces the capacity of the plant to produce safe clean water. Droughts can see the volume of water being able to be taken from the river reduced as set out in resource consents. This restricts capacity at a time when consumer demand is high.

33 SUMMARY OF EFFECTS

Positive Impact Negative Impact Mitigation ENVIRONMENTAL Sustainable water Environmental damage Environmental damage is mitigated through use. during construction of new resource consent conditions which are specified works. into the contract document and monitored closely during the implementation of physical works. Reduction in water levels Council consults with the community including in waterways used as farmers and businesses on any proposed water source for drinking water. level reduction. Environmental damage Council’s facilities maintenance contractor from leaking pipes. responds to leaks in minimal time to reduce any potential environmental damage. Impact on aquatic life from Intakes equipped with fish screens. New intake. information and understandings around aquatic life may mean an upgrade of an existing screen. Discharge of water Management of discharge- to treatment facilities treatment plant backwash before entering the environment or to the by-products into wastewater system. environment. Impact of increased waste Increase in chemical treatment at water supply products treatment plants will increase the need to treat the waste products. ECONOMIC Sufficient water The cost of investment in Council is committed to implementing cost- available for infrastructure. effective solutions as part of successful asset commercial operation. management. LoS have been set with consideration to community affordability and efficiencies are sought on an ongoing basis. The availability of Some townships do not Council is committed to improving the natural easily accessed water have adequate firefighting environment but acknowledges that it takes time to for firefighting capability. Significant make significant improvements. Council purposes reduces the costs and time to investigates any deficiencies identified by the NZ risk of fire damage implement the upgrade Fire Service. Firefighting capability is also taken within the community. and improvement projects. into consideration with network modelling. The supply capability is known to the fire service and they have a fleet of rural firefighting equipment. Significant compliance Council is transparent with its compliance costs costs for developers and with the development community as practicable. businesses and individual households. SOCIAL Safe and continuous Disruption to individual Construction is undertaken in such a way as to supply of water to property owners during minimise effects to property owners and to keep contribute to the new works construction. them fully informed of the proposed work. health and wellbeing of the community. Reduce the risk of Property damage resulting The development of the AMP to plan for replacement property damage. from mains failure or and upgrades in a timely manner. sustained leakage overtime. Sufficient, safe water Many properties still Water Safety Plan have been completed for Taumarunui available for receive poor quality Water Treatment Plant to meet the new requirements. recreational use by drinking water. These guide Council on mitigation and future community. improvements to improve the drinking water quality. The public water The effect on public health Council has a programme of upgrading water supply reduces the should the water supply treatment systems to meet drinking water risk of waterborne not meet water quality standards. diseases spreading standards. through the community.

34 Risk of events such as Council continues to develop its Emergency large earthquakes, Response Plans, resilience improvements and volcanic eruptions and managed mitigation. significant floods. CULTURAL

Joint governance on Reduction in water levels Council has regular communication with Iwi and decision making of in waterways closely monitors its abstraction from waterways. waterways such as unacceptable to tangata Education in the scarcity and importance of the Whangaehu whenua. efficient water use and actions individuals can catchment group for take. shared values related to water.

Newly upgraded Raetihi Water Treatment Plant

35 STATEMENT OF SERVICE PROVISION – WATER SUPPLY Community Well-being Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. Thriving natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meet required standards. Thriving economy: • Regulatory services and reliable infrastructure help the economy prosper. Level of Service • Quality of Drinking Water - continuity of potable water supply to applicable community areas. • Public Safety - pressure and flow. • Responsiveness. Key Performance Indicator(s) Actual Annual Plan Target 21/22 Target 22/23 Target 23/24 Target 24-28 Target 28-31 2019/20 2020/21 QUALITY OF DRINKING WATER Extent to which Council’s drinking Achieved Ohura =Y Ohura =Y Ohura =Y Ohura =Y Ohura =Y Ohura =Y water supplies comply with Part 4 Ohura =Y Taumarunui =Y Taumarunui =Y Taumarunui =Y Taumarunui =Y Taumarunui =Y Taumarunui =Y (bacteria compliance criteria) of the Taumarunui =Y Owhango =Y Owhango =Y Owhango =Y Owhango =Y Owhango =Y Owhango =Y Drinking Water Standard.* Owhango =Y N.P Village =Y N.P Village =Y N.P Village =Y N.P Village =Y N.P Village =Y N.P Village =Y N.P Village =Y Raetihi =Y Raetihi =Y Raetihi =Y Raetihi =Y Raetihi =Y Raetihi =Y (*Future increases reflect changing Raetihi =Y Ohakune =Y Ohakune =Y Ohakune =Y Ohakune =Y Ohakune =Y Ohakune =Y statutory requirements) Ohakune =Y Extent to which Council’s drinking Not Achieved Ohura =N Ohura =N Ohura =N Ohura =N Ohura =N Ohura =N water supplies comply with Part 5 Ohura =N Taumarunui =Y Taumarunui =N Taumarunui =Y Taumarunui =Y Taumarunui =Y Taumarunui =Y (protozoal compliance criteria) of the Taumarunui =Y Owhango =N Owhango =N Owhango =N Owhango =N Owhango =N Owhango =N Drinking Water Standard.* Owhango =N N.P Village =N N.P Village =N N.P Village =N N.P Village =N N.P Village =N N.P Village =N N.P Village =N Raetihi =Y Raetihi =N Raetihi = Y Raetihi =Y Raetihi =Y Raetihi =Y Raetihi =Y Ohakune =Y Ohakune =Y Ohakune =Y Ohakune =Y Ohakune =Y Ohakune =Y Ohakune =N RESPONSIVENESS Percentage of real water loss from Achieved ≤40% all ≤40% all ≤40% all ≤40% all <40% all <40% all the networked reticulation system, 12% supplies supplies supplies supplies supplies supplies using minimum night flow (MNF) (note 9) analysis (Note 8). Where the Council attends a call-out in response to a fault or unplanned interruption to its networked reticulation system, the following median response times are measured: Attendance for urgent call-outs: from Achieved Median Median Median Median Median Median the time that the Council receives 27 minutes response response response response response response notification to the time that service times ≤2 hours times <2 hours times <2 hours times <2 hours times <2 hours times <2 hours

36 Community Well-being Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. Thriving natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meet required standards. Thriving economy: • Regulatory services and reliable infrastructure help the economy prosper. Level of Service • Quality of Drinking Water - continuity of potable water supply to applicable community areas. • Public Safety - pressure and flow. • Responsiveness. Key Performance Indicator(s) Actual Annual Plan Target 21/22 Target 22/23 Target 23/24 Target 24-28 Target 28-31 2019/20 2020/21 personnel reach the site (ie. loss of water supply)(Notes 2,5 and 6) Resolution of urgent call-outs: from Achieved Median Median Median Median Median Median the time that the Council receives 5 Hours & 36 response response response response response response notification to the time that service minutes times <6 hours times <6 hours times <6 hours times <6 hours times <6 hours times <6 hours personnel confirm resolution of the fault or interruption site (ie. loss of water supply). (Notes 2 and 6)

Attendance to non-urgent callouts Achieved Median Median Median Median Median Median from the time that the Council 1 hour & 12 response response response response response response receives notification to the time that minutes times <36 times <36 times <36 times <36 times <36 times <36 service personnel reach the site (ie. hours hours hours hours hours hours no loss of water supply). (Notes 2,5 and 7) Resolution of non-urgent callouts Achieved Median Median Median Median Median Median from the time that the Council 3 hours & 44 response response response response response response receives notification to the time that minutes times <72 times <72 times <72 times <72 times <72 times <72 service personnel confirm resolution hours hours hours hours hours hours of the fault or interruption (ie. no loss of water supply) (Notes 2 and 7) PUBLIC SAFETY PRESSURES AND FLOW The total number of complaints (Note 4) received by Council about any of the following expressed per 1,000 connections (Note 3) to the network reticulation systems. Not Achieved (a) drinking water clarity, (a) 2.0 (a) ≤15 (a) ≤15 (a) ≤15 (a) ≤15 (a) ≤15 (a)-≤15 (b) taste, (b) 0.2 (b) ≤10 (b) ≤10 (b) ≤10 (b) ≤10 (b) ≤10 (b)-≤10

37 Community Well-being Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. Thriving natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meet required standards. Thriving economy: • Regulatory services and reliable infrastructure help the economy prosper. Level of Service • Quality of Drinking Water - continuity of potable water supply to applicable community areas. • Public Safety - pressure and flow. • Responsiveness. Key Performance Indicator(s) Actual Annual Plan Target 21/22 Target 22/23 Target 23/24 Target 24-28 Target 28-31 2019/20 2020/21 (c) Odour, (c) - (c) ≤5 (c ) ≤ 5 (c ) ≤ 5 (c ) ≤5 (c )-≤5 (c )- ≤5 (d) pressure and flow, (d) 1.6 (d) ≤25 (d) ≤25 (d) ≤25 (d) ≤25 (d)-≤25 (d)-≤25 (e) continuity of supply (e) 7.7 (e) ≤5 (e) ≤5 (e) ≤5 (e) ≤5 (e)-≤5 (e)-≤5 (f) Council response times (f) – (f) ≤25 (f) 25 (f) ≤25 (f) ≤25 (f)-≤25 (f)-≤25 The average consumption of drinking water per day per resident Achieved 500 500 500 500 500 500 within the territorial authority district 448 (litres per person per day)

Peak demand using peak population Achieved (litres per person per day) 252 ≤300 ≤300 ≤300 ≤300 ≤300 ≤300

Notes: 1 Mandatory Non-Financial Performance Measures, against which all infrastructure in New Zealand are measured, were introduced by the Department of Internal Affairs in 2014. 2 The times shown for “attendance and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these have not been verified by Council, however audits and GPS checks are conducted upon job completion. 3 The number of connections is calculated from the number of customers charged in their rates for use of Council water services (calculated at 5,446 at 1 July 2019). 4 There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence. However, for afterhours complaints received from the Palmerston North call centre, only the first complaint about an incident was recorded. 5 The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia. 6 An urgent call-out is one that leads to a complete loss of supply of drinking water due to a fault or unplanned interruption. 7 A non-urgent call-out is one where there is still a supply of drinking water. 8 Real water loss refers to volumes lost through leaks, bursts or overflows on mains, service reservoirs and services connections, up to the point of the customer meter. 9 This figure is for Taumarunui urban area only. There is a huge variance across the wider area of Taumarunui. 95% night flow water loss for SH4 Piriaka indicating high leakage or high unmetered consumption during the night (eg for irrigation purposes) and 41% night flow water loss for Mahoe Settlement.

38 FUNDING IMPACT STATEMENT - WATER SUPPLY Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan

20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Sources of Operating Funding General rates, uniform annual general ------charges, rates penalties Targeted rates 3,838 3,975 4,540 4,719 5,106 5,378 5,749 6,067 6,457 6,607 6,810 Subsidies and grants for operating purposes - 120 ------Fees and charges 299 103 106 110 113 117 121 125 129 134 138 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement ------fees, and other receipts Total Operating Funding (A) 4,137 4,198 4,646 4,829 5,219 5,495 5,870 6,192 6,586 6,741 6,948

Applications of Operating Funding Payments to staff and suppliers 2,442 2,568 2,705 2,784 2,961 2,994 3,051 3,198 3,423 3,443 3,527 Finance costs 195 180 290 355 486 668 859 999 1,120 1,225 1,325 Internal charges and overheads applied 188 202 219 235 238 248 264 266 273 282 283 Other operating funding applications ------

Total applications of operating funding (B) 2,825 2,950 3,214 3,374 3,685 3,910 4,174 4,463 4,816 4,950 5,135

Surplus (deficit) of operating funding (A-B) 1,312 1,248 1,432 1,455 1,534 1,585 1,696 1,729 1,770 1,791 1,813

Sources of capital funding

Subsidies and grants for capital expenditure 4,000 2,800 ------

39 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Development and financial contributions 16 30 31 32 33 35 36 37 38 39 41

Increase (decrease) in debt 3,226 6,833 1,665 4,843 3,786 7,736 2,636 2,619 732 1,139 274 Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) 7,242 9,663 1,696 4,875 3,819 7,771 2,672 2,656 770 1,178 315

Applications of capital funding Capital expenditure - to meet additional demand 6,650 560 75 419 247 353 64 119 68 70 60 - to improve the level of service 561 6,020 769 3,084 1,674 4,495 1,138 750 45 341 - - to replace existing assets 1,116 4,213 2,072 2,691 3,614 4,466 3,122 3,481 2,370 2,481 1,938 Increase (decrease) in reserves 227 118 212 136 (182) 42 44 35 57 77 130 Increase (decrease) of investments ------Total applications of capital funding (D) 8,554 10,911 3,128 6,330 5,353 9,356 4,368 4,385 2,540 2,969 2,128

Surplus (deficit) of capital funding (C-D) (1,312) (1,248) (1,432) (1,455) (1,534) (1,585) (1,696) (1,729) (1,770) (1,791) (1,813)

Funding Balance ((A-B)+(C-D)) ------

40 WASTEWATER (SEWERAGE)

THE PURPOSE OF THE WASTEWATER ACTIVITY IS TO COLLECT AND DISPOSE OF WASTEWATER IN AN EFFECTIVE AND ENVIRONMENTALLY FRIENDLY MANNER. THIS ACTIVITY IS ESSENTIAL IN ORDER TO PROTECT THE ENVIRONMENT AND TO MAINTAIN PUBLIC HEALTH. Council’s wastewater assets consist of: Council owns treatment plants at Taumarunui, National Park • Village, Ohakune, Pipiriki, Raetihi and Rangataua. In addition, 6 wastewater treatment Council co-operates with the NZ Army in Waiouru to provide plants wastewater services for the town. • 126.1 km of pipes • 17 pump stations RATIONALE • 1627 manholes Council is required to assess water and other sanitary services • 4,784 rateable service available to the community, including stormwater drainage, connections and has a duty under Section 23 of the Health Act 1956 to improve, promote and protect public health. As well as the legal mandate, this service contributes to several of Council’s Community Outcomes.

COMMUNITY WELL–BEING OUTCOMES

Significant projects included in our budget that will enable Council to achieve these outcomes are:

Infrastructure Strategy Major Capital Projects Total ($) Growth Renewa LOS Year l National Park WWTP: Upgrade Physical Works 1,230,300 15% 85% 5 and 9 Ohakune Wastewater Networks: Wastewater 1,701,770 100% 1-10 Main Refurbishment Ohakune WWTP: Upgrade 2,347,836 85% 15% 3-5 and 10 Raetihi WWTP: Upgrade 782,612 7% 93% 3-5 and 10 Taumarunui Wastewater Networks: Hakiaha 470,000 100% 1 Street Main Upgrade Taumarunui (Hikumutu) WWTP: Asset Renewal 1,180,000 100% 1 and 4 Taumarunui (Hikumutu) WWTP: Upgrades 537,000 100% 1 Taumarunui Wastewater Networks: Wastewater 4,611,391 100% 1-10 Main Refurbishment

41 SIGNIFICANT NEGATIVE EFFECTS The collection, treatment and discharge of wastewater has a negative effect on the environment through the final disposal of treated wastewater.

The effects of climate change predictions are more extreme events of weather with increased frequency. The wastewater network can be effected by infiltration (water entering the system from high ground water tables) and inflow from stormwater flowing across the ground or illegal connections into the network. These forces can impact on individuals or whole communities’ properties and the environment.

Failures in the collection or treatment system, can result in untreated or partially treated wastewater discharges. This wastewater may contain pathogens and nutrients that can be harmful to humans and the environment. Wastewater may accumulate on the ground, percolate into the groundwater or flow into nearby waterways. This poses public health risks and can damage aquatic environments and/or cause property damage.

New more intensive treatment technologies will be required to deliver to higher environmental standards for the land, air and water These methods include high treatment costs including higher carbon outputs to deliver lower nutrient outputs. The investment in new infrastructure and compliance costs could be significant for developers and businesses along with individual households.

Council mitigates discharge effects by treating wastewater to an agreed level that meets resource consent conditions. Resource consent processes are lengthy and difficult to navigate with changing legislation, policy and regulations.

Wastewater discharges may also contribute to pollution issues experienced downstream of treatment facilities. Horizons One Plan’s new targets for wastewater treatment will require significant investment by Council. Council mitigates discharge effects by treating wastewater to an agreed level that meets resource consent conditions.

Council’s contractor has prepared a Health and Safety Assessment of Council’s systems to assist Council in the prioritisation, planning and implementation of mitigation measures. This report is available to view at all Council offices.

42 SUMMARY OF EFFECTS

Potential Positive Potential Negative Impacts Mitigation Impact Environmental Centralised public The potential for emissions to Council is committed to understanding wastewater services affect climate, and especially the impacts of climate change on public collect and discharges ‘global warming’, including the infrastructure and mitigates this wastewater limiting the effect of certain substances on the through advice from central environmental impact. ozone layer. government agencies. Environmental damage during Environmental damage is mitigated construction of new works. through resource consent conditions which are specified in the contract document and monitored closely during the implementation of physical works. Environmental degradation of Council continues to monitor receiving water from wastewater watercourse water quality in overflows. conjunction with Horizons Regional Council.

Economic Infrastructure provides for The cost of investment in Council is committed to implementing township growth infrastructure. cost-effective solutions as part of successful asset management. Levels of service have been set with consideration to community affordability and efficiencies are sought on an ongoing basis. Significant costs and time to Council is committed to improving the implement the upgrade and natural environment but acknowledges overflow reduction improvement that it takes time to make significant projects. improvements. Significant compliance costs for Council is transparent with its developers and businesses and compliance costs with the development individual households. community as practicable. Social Safe environment for the Disruption to individual property Construction is undertaken in such a community. owners during new works way as to minimise effects to property construction. owners and to keep them fully informed of the proposed work. The public wastewater Property damage resulting from The development of the AMP to plan service reduces the risk of mains failure or sustained leakage for replacement and upgrades in a waterborne diseases overtime. timely manner. spreading through the community. Cultural Our environment is Contamination of the rivers is Council is committed to improving the protected and our unacceptable to tangata whenua. environment through regular waterways are safe places communication with its partners. for our community to

enjoy.

43 STATEMENT OF SERVICE PROVISION – WASTEWATER Community Well-being Outcome(s) Safe, healthy communities: • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. Thriving natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meet required standards. Thriving Economy: • Regulatory services and reliable infrastructure help the economy prosper. Level of Service • Public Safety - Continuity of Wastewater collection system. • Responsiveness to infrastructure issues. • Environmental sustainability. Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 ENVIRONMENTAL STABILITY Number of dry weather wastewater Achieved. 1.90 ≤7 ≤7 ≤7 ≤7 ≤7 ≤7 overflows from Council’s system Increase of the number (expressed as per 1,000 connections of dry weather overflows (Note 3) to that system). this year Compliance with Council’s resource consents for discharges from the wastewater system as measured by number of:

(a) Abatement notices; Achieved (a) ≤2 (a) ≤2 (a) ≤2 (a) ≤2 (a) ≤2 (a) ≤2 (b) Infringement notices; No Abatement notices (b) ≤2 (b) ≤2 (b) ≤2 (b) ≤2 (b) ≤2 (b) ≤2 (c) Enforcement orders; have been received over (c) ≤1 (c) ≤1 (c) ≤1 (c) ≤1 (c) ≤1 (c) ≤1 (d) Convictions received by Council in the year. (d) 0 (d) 0 (d) 0 (d) 0 (d) 0 (d) 0 relation to those resource consents. RESPONSIVENESS TO INFRASTRUCTURE ISSUES Where Council attends to wastewater (sewerage) overflows resulting from a blockage or other fault in the Council Wastewater system, the following median response times measured: Attendance time: from the time that Achieved. 0.58 Median Median Median Median Median Median Council receives notification to the time Attendance times have response response response response response response that service personnel reach the site improved for wastewater times times times times times times (Note 2 & 5). callouts ≤2hours for ≤2hours for ≤2hours for ≤2hours for ≤2hours for ≤2hours for a blockage a blockage a blockage a blockage a blockage a blockage or fault. or fault. or fault. or fault. or fault. or fault. Resolution time: from the time that the Achieved 3.07 Median Median Median Median Median Median Council receives notification to the time Resolution times have response response response response response response that service personnel confirm resolution improved for wastewater times ≤6 times ≤6 times ≤6 times ≤6 times ≤6 times ≤6 of the blockage or other fault. (Note 2 callouts hours for a hours for a hours for a hours for a hours for a hours for a &5.) blockage or blockage or blockage or blockage or blockage or blockage or fault. fault. fault. fault. fault. fault.

44 Community Well-being Outcome(s) Safe, healthy communities: • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. Thriving natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meet required standards. Thriving Economy: • Regulatory services and reliable infrastructure help the economy prosper. Level of Service • Public Safety - Continuity of Wastewater collection system. • Responsiveness to infrastructure issues. • Environmental sustainability. Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Total number of complaints (Note 4) Achieved. received by Council about any of the The total number of following (expressed as per 1000 complaints were 2, this connections (Note 3) to the territorial equates to 4.22 per authority’s wastewater system): 1,000 connections and is (a) Wastewater odour broken down below: (b) Wastewater system faults (a) 0.63 (a) ≤15 (a) ≤15 (a) ≤15 (a) ≤15 (a) ≤15 (a) ≤15 (c) Wastewater system blockages (b) 0.84 (b) ≤5 (b) ≤5 (b) ≤5 (b) ≤5 (b) ≤5 (b) ≤5 (d) The Councils response to issues with (c) 2.74 (c) ≤25 (c) ≤25 (c) ≤25 (c) ≤25 (c) ≤25 (c) ≤25 its Wastewater system (d) 0.00 (d) ≤25 (d) ≤25 (d) ≤25 (d) ≤25 (d) ≤25 (d) ≤25

Notes: 1 There are now mandatory Non-Financial Performance Measures against which all Wastewater infrastructure in New Zealand are measured. 2019/20 is the third year these KPIs have been measured. 2 The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these have not been verified by Council. 3 The number of connections is calculated from the number of customers charged in their rates for use of Council wastewater services (calculated at 4,740 as at 1 July 2019). 4 There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence. However, for afterhours complaints received from the Palmerston North call centre, only the first complaint about an incident was recorded. 5 The medium time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.

45 FUNDING IMPACT STATEMENT - WASTEWATER (SEWERAGE) Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan

20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding General rates, uniform annual general 19 23 25 25 25 26 26 26 26 27 27 charges, rates penalties Targeted rates 2,407 2,531 3,004 2,913 2,987 3,228 3,352 3,521 3,521 3,661 3,844 Subsidies and grants for operating purposes - 120 ------Fees and charges 100 103 107 112 117 122 127 132 138 144 150 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement ------fees, and other receipts Total Operating Funding (A) 2,526 2,777 3,136 3,050 3,129 3,376 3,505 3,679 3,685 3,832 4,021

Applications of Operating Funding Payments to staff and suppliers 1,483 1,650 1,876 1,755 1,772 1,941 2,001 2,134 2,056 2,111 2,126 Finance costs 58 33 82 99 140 190 229 269 318 393 529 Internal charges and overheads applied 188 202 219 235 238 248 264 266 273 282 283 Other operating funding applications ------Total applications of operating funding (B) 1,729 1,885 2,177 2,089 2,150 2,379 2,494 2,669 2,647 2,786 2,938

Surplus (deficit) of operating funding (A-B) 797 892 959 961 979 997 1,011 1,010 1,038 1,046 1,083

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions 32 62 64 66 69 71 73 76 78 81 84 Increase (decrease) in debt 468 3,779 592 1,177 1,599 1,503 285 1,308 701 2,677 3,879 Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) 500 3,841 656 1,243 1,668 1,574 358 1,384 779 2,758 3,963

Applications of capital funding

46 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan

20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Capital expenditure - to meet additional demand 20 87 20 62 96 137 74 818 186 409 531 - to improve the level of service 508 1,527 176 703 582 402 - 168 - 1,227 2,922 - to replace existing assets 259 3,099 1,233 1,254 1,838 1,871 1,138 1,306 1,476 2,022 1,497 Increase (decrease) in reserves 510 20 186 185 131 161 157 102 155 146 96 Increase (decrease) of investments ------Total applications of capital funding (D) 1,297 4,733 1,615 2,204 2,647 2,571 1,369 2,394 1,817 3,804 5,046

Surplus (deficit) of capital funding (C-D) (797) (892) (959) (961) (979) (997) (1,011) (1,010) (1,038) (1,046) (1,083)

Funding Balance ((A-B)+(C-D)) ------

47 STORMWATER & FLOOD PROTECTION

EFFICIENT AND EFFECTIVE STORMWATER AND FLOOD PROTECTION INFRASTRUCTURE IS A KEY ELEMENT IN THE SUSTAINABLE AND HEALTHY DEVELOPMENT OF A COMMUNITY. A DEVELOPED NETWORK OF PIPES, CULVERTS TO DRAINS AND WATERCOURSES PROVIDES A SAFE AND EFFICIENT MEANS OF COLLECTING AND CONDUCTING STORMWATER THROUGH TOWNSHIPS.

RATIONALE Under the Local Government Act, Council is required to assess water and other sanitary services available to the community, including stormwater drainage.

There have also been significant legislation and policy changes that will impact the stormwater activity including the 3 water reforms, more freshwater management direction, zero carbon bill and climate change considerations over the last three years. There is now a new crown entity Taumata Arowai to regulate drinking water and Water Services. Further legislation and regulation changes are expected with proposed changes to the Resource Management Act.

As well as the legal mandate to provide this service, Council aims to: • Provide efficient and safe stormwater collection and disposal and flood protection in an effective and environmentally acceptable manner. • Plan for resilience to flooding and safeguard the lives and property of communities during flood events. • Develop a stormwater treatment system which reduces degradation and contamination to the receiving environment

The stormwater network reticulation compromises of 66.5km of stormwater mains plus approximately 645 manholes across the district plus open drains, associated culverts and sumps.

COMMUNITY WELL-BEING OUTCOMES

Social Environmental Economic

Significant projects included in our budget that will enable Council to achieve these outcomes are:

Infrastructure Strategy Major Capital Projects Total ($) Growth Renewal LOS Year Taumarunui Stormwater Networks: Stormwater Main 1,715,000 100% 1-10 Replacement Taumarunui Stormwater: Short St Physical Works 1,000,000 100% 2

48 Stormwater is rainwater that runs over the ground on its way to a natural watercourse. When rain falls on buildings, carparks, roads, driveways and gardens, but does not soak into the ground, it will pond or follow a natural flow path downhill until it reaches a watercourse or is collected by a pipe system. Where there is development, runoff from properties and roads flows into stormwater systems. The greater the level of development in a catchment, the greater the level of impermeable surfaces, e.g., roofs, driveways and paths, which results in a greater conversion of rainfall into runoff. If this runoff is not managed, it will cause flooding. Generally, stormwater is directed into channels on roadways or into drains, then into streams and rivers.

SIGNIFICANT NEGATIVE EFFECTS The stormwater and flood protection runoff naturally contains debris and chemicals that are present in the catchment area. Due to the presence of these chemicals and other debris, the disposal of stormwater and flooding into natural watercourses may have negative effects on the quality of the aquatic environment. This can also reduce the communities opportunity to engage with the water for swimming, sports or gathering kai.

The effects of climate change predictions are more extreme weather events increasing in frequency. The volume of water (rainfall events) impacts on the capacity of the watercourse, culvert and river system. When there is too much water to hold, flooding occurs which may impact on individuals or whole communities’ properties and transportation networks.

Taumata Arowai (the new regulator) will need to be supported. The legislation allows for funding through its compliance checks of Council service delivery. This will be a new charge which will ultimately be funded by the customers and ratepayers. In addition the government has announced the formation of centralized three waters entities to deliver services. Stormwater treatment standards are still to be developed. The impact of how these services will operate is not yet clear but community affordability remains a high risk.

Stormwater and flooding runoff is monitored by Horizons Regional Council for water quality and other effects. Council maintains its stormwater and flood protection systems to reduce the level of flooding within the District.

SUMMARY OF EFFECTS

Positive Impact Negative Impact Mitigation Environmental Potential environmental Environmental damage during Environmental damage is mitigated through impact from construction construction of new works. resource consent conditions which are specified of infrastructure into the contract document and monitored closely during the implementation of physical works. Instream effects The potential for emissions to Council is committed to understanding the minimised affect climate and especially impacts of climate change on public infrastructure global warming, including the and mitigates this through advice from central effect of certain substances government agencies. on the ozone layer. Environmental degradation of Council continues to improve the planning of new receiving water from subdivisions and high volume parking areas to stormwater discharges. improve the quality of discharges. Waterways with no vegetation Partnership with Horizons to control vegetation management has resulted in around communities. changes to water courses, reducing riverbed capacity and creating bank erosion.

49 Positive Impact Negative Impact Mitigation The stormwater and flood Stormwater and flooding runoff are monitored by protection runoff naturally Horizons Regional Council for water quality and contains debris and chemicals other effects. that are present in the catchment area. Economic Provides infrastructure to The cost of investment in Council is committed to implementing cost- support business infrastructure. effective solutions as part of successful asset development in the management. LoS have been set with community. consideration to community affordability and efficiencies are sought on an ongoing basis. Significant costs and time to Council is committed to improving the natural implement new stormwater environment but acknowledges that it takes time treatment projects across to make significant improvements. multiple townships. Significant compliance costs Council is transparent with its compliance costs for developers and with the development community as far as businesses and individual practicable. households. Risk of stifling community Education with community and developers that investment because of stormwater neutrality and treatment is part of the perception of reduced water cost of business and done together is quality. achievable.

Social Provides infrastructure Disruption to individual Construction is undertaken in such a way as to to protect habitable property owners during new minimise effects to property owners and to keep areas from flooding. works construction. them fully informed of the proposed work. Instream effects Watercourses become Treatment of stormwater to remove gross and minimized. degraded and unfit for other pollutants. Upgrade of stormwater systems interaction: wading or in urban areas where the ponding from flooding swimming. is considered too deep and therefore unsafe for local residents, particularly children. Cultural Community and iwi Reduced water quality will Council has communication with iwi and are consultation in urban is result in iwi disengaging with working towards ways of meeting its legislative effective for the decision Council. obligations. making process. Improving water quality Increased stormwater runoff Council is working to improve catchments by will enhance Councils into waterways is increasing engagement with the community and relationship with tangata unacceptable to tangata its partners. whenua. whenua

50 STATEMENT OF SERVICE PROVISION – STORMWATER AND FLOOD PROTECTION Outcome(s) Safe, healthy communities: • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. • Excellent standards of safety and welfare are promoted and respected. • Preparation, planning and timely responses protect people and property from natural hazards. Thriving natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meet required standards. Thriving Economy: • Regulatory services and reliable infrastructure help the economy prosper. Level of Service • Continuity of service • Responsiveness of service • Capacity/degree of protection • Environmental impacts are managed and resource consents complied with Annual Actual Target Target Target Target Target Key Performance Indicator(s) Plan 2019/20 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 CAPACITY/DEGREE OF PROTECTION The number of flooding events that occur in a territorial authority Achieved. district (Note 3). For each event, number of habitable floors No flooding events ≤3 ≤3 ≤3 ≤3 ≤3 ≤3 affected (Note 4) (per 1,000 properties connected (Note 2) to this year. Council’s stormwater system). ENVIRONMENTAL IMPACTS ARE MANAGED AND RESOURCE CONSENTS COMPLIED WITH Compliance with Councils resource consents for discharges from Achieved. the stormwater system as measured by number of: No Abatement, (a) abatement notices infringement or (b) infringement notices enforcement notices (a) ≤2 (a) ≤2 (a) ≤2 (a) ≤2 (a) ≤2 (a) ≤2 (c) enforcement orders received. No (b) ≤1 (b) ≤1 (b) ≤1 (b) ≤1 (b) ≤1 (b) ≤1 (d) successful prosecutions received by Council in relation to prosecutions for (c) ≤1 (c) ≤1 (c) ≤1 (c) ≤1 (c) ≤1 (c) ≤1 those resource consents. resource consents. (d) 0 (d) 0 (d) 0 (d) 0 (d) 0 (d) 0 RESPONSIVENESS OF SERVICE Achieved The median response time to attend a flooding event (note 4), There were no measured from the time that Council receives notification to the ≤2 hours ≤2 hours ≤2 hours ≤2 hours ≤2 hours ≤2 hours flooding events time that service personnel reach the site. reported. Achieved 3.8 Figures used for The number of complaints (Note 5) received by Council about the insufficient capacity performance of its stormwater system, (expressed as per 1000 ≤15 ≤15 ≤15 ≤15 ≤15 ≤15 and chokes / properties connected to Council’s stormwater system) blockages combined for 2019/20 Notes: 1 Mandatory Non-Financial Performance Measures, against which all stormwater and flood protection in New Zealand are measured, were introduced by the Department of Internal Affairs 2014. 2 The number of connections is calculated from the number of customers charged in their rates for use of Council stormwater services (calculated at 5,407as at 23 June 2020). 3 A flooding event means overflow of stormwater from a Council stormwater system that enters a habitable floor. 4 A habitable floor refers to a floor of a building (including basement) but does not include ancillary structures such as stand-alone garden sheds or garages. 5 There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence. However, for after hour’s complaints received from the Palmerston North call centre, only the first complaint about an incident was recorded.

51 FUNDING IMPACT STATEMENT - STORMWATER AND FLOOD PROTECTION Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding General rates, uniform annual general charges, 449 486 572 584 592 612 630 649 668 687 690 rates penalties Targeted rates 449 486 572 584 592 612 630 649 668 687 690 Subsidies and grants for operating purposes - 60 ------Fees and charges 4 17 22 29 32 33 34 35 36 37 39 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement ------fees, and other receipts

Total Operating Funding (A) 902 1,049 1,166 1,197 1,216 1,257 1,294 1,333 1,372 1,411 1,419

Applications of Operating Funding Payments to staff and suppliers 446 559 634 621 617 640 656 677 693 716 710 Finance costs 24 8 24 38 48 55 63 73 83 90 98 Internal charges and overheads applied 94 101 110 118 119 124 132 133 137 141 141 Other operating funding applications ------

Total applications of operating funding (B) 564 668 768 777 784 819 851 883 913 947 949

Surplus (deficit) of operating funding (A-B) 338 381 398 420 432 438 443 450 459 464 470

Sources of capital funding Subsidies and grants for capital expenditure ------

52 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Development and financial contributions ------

Increase (decrease) in debt 527 309 1,100 383 147 77 189 191 67 71 73 Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) 527 309 1,100 383 147 77 189 191 67 71 73

Applications of capital funding Capital expenditure - to meet additional demand 31 13 13 13 14 45 102 106 109 113 116 - to improve the level of service 517 146 1,112 439 218 122 181 187 67 69 71 - to replace existing assets 106 531 146 151 157 163 323 342 353 364 375 Increase (decrease) in reserves 211 - 227 200 190 185 26 6 (3) (11) (19) Increase (decrease) of investments ------Total applications of capital funding (D) 865 690 1,498 803 579 515 632 641 526 535 543

Surplus (deficit) of capital funding (C-D) (338) (381) (398) (420) (432) (438) (443) (450) (459) (464) (470)

Funding Balance ((A-B)+(C-D)) ------

53 SOLID WASTE

THE WASTE MANAGEMENT AND MINIMISATION ACTIVITY MANAGES THE COLLECTION AND DISPOSAL OF RUBBISH AND RECYCLING IN THE DISTRICT. THE ASSETS FOR THIS ACTIVITY INCLUDE THE DISTRICT LANDFILL IN TAUMARUNUI, SEVEN TRANSFER STATIONS AND SEVEN DECOMMISSIONED (CLOSED) LANDFILLS.

RATIONALE There are two pieces of legislation that require councils to provide this service to their communities: • The Health Act 1956 requires Council to provide this activity to ensure that the public suffers no adverse effects due to the accumulation of refuse (both legal and illegal). • The Waste Minimisation Act 2008 requires councils to promote effective and efficient waste management.

Since 2015 the proportion of waste recycled in the district has remained steady along with the volume of refuse landfilled within the Ruapehu District. Over the last three financial years we have sent an average of 3,344 tonnes of waste to the landfill.

This presents a significant challenge to the community as the resource consent for the Taumarunui Landfill expired in October 2020 and all waste disposal is now shipped out of district to Hampton Downs Landfill. As this is now a more expensive option, the community must show a greater commitment to generating and disposing of waste as efficiently as possible. This will include increased recycling and dealing with food waste by a means other than sending it to the landfill (eg. Composting, resource recovery centres).

COMMUNITY WELL-BEING OUTCOMES

Social Environmental Economic

Significant projects included in our budget that will enable Council to achieve these outcomes are:

Infrastructure Strategy Major Total ($) Growth Renewal LOS Year Capital Projects Roof over sorting facility Taumarunui 400,000 100% 1

SIGNIFICANT NEGATIVE EFFECTS The Waste Management and Minimisation activity collects rubbish from around the District and deposits it at Hampton Downs Landfill. The accumulation of waste in one area concentrates the effects that this refuse may have on its immediate environment. This includes negative effects such as water contamination, odour and vermin nuisances.

In addition, landfill waste can result in significant environmental effects on the immediate area. For example, leachate can contaminate surrounding soil and water, while landfill gases (methane and carbon dioxide) pollute the air.

On the other hand, a single landfill limits the area of possible contamination to one location. It allows resources to be concentrated on reducing and managing the environmental impact of contamination.

54 Ruapehu District Council must abide by resource consent conditions to ensure responsible management of the negative environmental effects of the landfill. Horizons Regional Council monitors closed landfills for ongoing environmental impact.

The disposal of waste to landfill has a significant cost associated with it. This cost has increased with the closure of the district landfill in 2020. To address these issues, Council is actively working to minimise the volume of waste produced, eg, through the kerbside recycling programme and removing organics from the waste stream. Significant community education and buy in will be required to further lower the volumes of refuse landfilled

55 STATEMENT OF SERVICE PROVISION – SOLID WASTE

Community Well-being Outcome(s) Safe, healthy communities • Excellent standards of safety and welfare are promoted and respected. • Core infrastructure endeavours to keep pace with changing demand. • Reduce the volume of waste to the landfill. Thriving natural environment • Our environment is accessible, clean and safe and our water, soil and air meet required standards. • Level of Service The community is provided with opportunities to recycle • Waste minimisation is encouraged • Legislative compliance is achieved • Waste hierarchy (reduce, reuse, recover, redirect and refuse) promoted throughout the community • Waste education in schools • Community is satisfied with the overall level of service for waste management and minimisation Key Performance Indicator(s) Actual 2019/20 Annual Target Target Target Target Target Plan 2021/22 2022/23 2023/24 2027-31 2024-27 2020/21 THE COMMUNITY IS PROVIDED WITH OPPORTUNITIES TO RECYCLE The portion of waste recycled increases by 0.5% Not achieved 0.5% +0.5% +0.5% +0.5% +0.5% +0.5% each year.(Note 1) overall Overall Overall Overall Overall Overall -4.1% COVID-19 Lockdown resulted in a month of non-recycling which threw us off our target we were on track to meet, this was a country wide phenomenon. WASTE MINIMISATION IS ENCOURAGED A comprehensive waste audit is conducted every LTP To be conducted in 1 1 cycle to inform any change to the Waste minimisation 2021

and Management Plan WASTE HIERARCHY (REDUCE,REUSE,RECOVER,REDIRECT & REFUSE) PROMOTED THROUGHOUT THE COMMUNITY Waste Minimisation initiatives promoted District wide Achieved 4 4 4 4 4 4 through multimedia communications.(Note 2) 13 Two industry stewardship schemes promoted annually Achieved 2 2 2 2 2 2 2

56 Community Well-being Outcome(s) Safe, healthy communities • Excellent standards of safety and welfare are promoted and respected. • Core infrastructure endeavours to keep pace with changing demand. • Reduce the volume of waste to the landfill. Thriving natural environment • Our environment is accessible, clean and safe and our water, soil and air meet required standards. • Level of Service The community is provided with opportunities to recycle • Waste minimisation is encouraged • Legislative compliance is achieved • Waste hierarchy (reduce, reuse, recover, redirect and refuse) promoted throughout the community • Waste education in schools • Community is satisfied with the overall level of service for waste management and minimisation Key Performance Indicator(s) Actual 2019/20 Annual Target Target Target Target Target Plan 2021/22 2022/23 2023/24 2027-31 2024-27 2020/21 LEGISLATIVE COMPLIANCE ACHIEVED Annual resource consent breaches 0 <2 <2 <2 <2 <2 <2

WASTE EDUCATION IN SCHOOLS Percentage of schools visited annually that Achieved 75% 75% 75% 75% 75% 75% participate in a Waste minimisation Education 75% programme. COMMUNITY IS SATISFIED WITH THE OVERALL LEVEL OF SERVICE FOR WASTE MANAGEMENT AND MINIMIZATION Percentage of community satisfied with the overall Achieved 70% 75%(3) 75% 75% 75% 75% LoS 80.45% Number of requests for service that indicate poor Achieved <52 <52 <52 <52 <52 <52 service provision is less than 52 per year (approx. 1 27 per week). (Note 4.) Notes: 1 Future targets increased to reflect desired response to waste minimisation promotions through multimedia communications 2 Future targets increased to reflect ability to use Facebook and website video links in addition to traditional methods of communication 3 Future targets changed to reflect actual performance. 4 Future targets decreased to match desire to provide excellent level of service by Principal and Contractor

57 FUNDING IMPACT STATEMENT - SOLID WASTE Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding General rates, uniform annual general 360 559 621 633 660 671 691 723 734 757 821 charges, rates penalties Targeted rates 851 813 889 916 958 984 1,020 1,069 1,098 1,140 1,223

Subsidies and grants for operating purposes ------

Fees and charges 840 862 889 946 974 1,002 1,026 1,055 1,085 1,115 1,142 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement ------fees, and other receipts Total Operating Funding (A) 2,051 2,234 2,399 2,495 2,592 2,657 2,737 2,847 2,917 3,012 3,186

Applications of Operating Funding Payments to staff and suppliers 1,966 2,134 2,245 2,328 2,419 2,478 2,549 2,658 2,720 2,808 2,980 Finance costs 7 16 27 27 29 31 32 33 35 36 37 Internal charges and overheads applied 56 61 66 71 72 74 79 80 82 85 85 Other operating funding applications ------Total applications of operating funding (B) 2,029 2,211 2,338 2,426 2,520 2,583 2,660 2,771 2,837 2,929 3,102

Surplus (deficit) of operating funding (A-B) 22 23 61 69 72 74 77 76 80 83 84

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------

58 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) increase (decrease) in debt 86 795 27 10 (54) (49) (50) (27) (34) (33) (31) Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) 86 795 27 10 (54) (49) (50) (27) (34) (33) (31)

Applications of capital funding Capital expenditure - to meet additional demand 42 85 18 53 - - - 21 - - - - to improve the level of service 52 731 62 11 - 3 - - 13 13 13 - to replace existing assets 10 ------Increase (decrease) in reserves 4 2 8 15 18 22 27 28 33 37 40 Increase (decrease) of investments ------Total applications of capital funding (D) 108 818 88 79 18 25 27 49 46 50 53

Surplus (deficit) of capital funding (C-D) (22) (23) (61) (69) (72) (74) (77) (76) (80) (83) (84)

Funding Balance ((A-B)+(C-D)) ------

59 RECREATIONAL AND COMMUNITY FACILITIES AND COMMUNITY PROPERTY

THIS ACTIVITY PROVIDES A RANGE OF RECREATION FACILITIES AND PROPERTY WITHIN EACH COMMUNITY THAT IS READILY ACCESSIBLE AND ENJOYED BY THE COMMUNITY. COUNCIL REGARDS THIS ACTIVITY AS AN ESSENTIAL SERVICE FOR THE PUBLIC GOOD.

RATIONALE Under the Local Government Act, Council is required to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future.

The total value of the Recreation and Community Facilities portfolio is currently estimated to be $17.2 million. It includes parks, reserves, playgrounds, walkways, swimming pools, community halls, public toilets and cemeteries.

The total value of the Community Property portfolio is currently estimated to be $24.6 million. It includes the Council administration and library buildings, social housing, and others.

As well as the legal mandate to provide these services, The Recreation and Community Facilities and Community Property activities play an important role in achieving Council’s community well- being outcomes.

COMMUNITY WELL-BEING OUTCOMES

Social Cultural Leadership

Significant projects included in our budget that will enable Council to achieve these outcomes are:

Infrastructure Strategy Major Capital Renewa Total ($) Growth LOS Year Projects l Demolition of earthquake prone buildings if 2,000,000 100% 5 bought or given to Council Ohakune Revit Outcomes Revitalisation 2,000,000 100% 5 Raetihi CBD development 1,000,000 100% 4 Town Revitalisation Raetihi service hub 3,000,000 100% 2-4 Taumarunui Hakiaha St verandas 468,000 100% 1-3 National Park Revitalisation plan 1,000,000 100% 1-5 Ohakune Town Planning (operational, debt 500,000 100% 1-3 funded) Taumarunui Main Street Stage 3 500,000 100% 4 Taumarunui Railway Station Museum / i- 500,000 100% 4 SITE Housing project - 6 unit build 1,400,000 100% 1 Taumarunui Pool and Plant Renewal 400,000 100% 4

60 PARKS AND RESERVES The Reserves Act 1977 provides the mandate and guidelines for the management of Council Reserves, most of which have been vested in Council by the Crown.

The purpose of Parks and Reserves assets is to: • Provide space for people to pursue active and passive recreational activities for their social, spiritual, mental and physical wellbeing. • Provide the landscape setting for towns. • Ensure the protection and maintenance of history (ecological and human) and character of the area. • Ensure that environments essential to the existence of plant and animal species (including humans) are maintained. • Protect public access to significant landscape features and recreation areas.

Areas covered by the Parks and Reserves Activity include parks, reserves, playgrounds, camping grounds (Taumarunui, Raetihi and Ohakune Holiday Parks), walkways, miscellaneous structures (for example, the Taumarunui Grandstand).

SWIMMING POOLS Council maintains and operates three public swimming pools located in the three main townships; Taumarunui, Ohakune and Raetihi.

Public swimming pools provide highly valued swimming facilities for the people of the District. The three swimming pool complexes owned by Council are considered to be significant assets.

During public consultation in 2017 to consider the future of the pool because of a major water loss at the Taumarunui Pool, the Taumarunui community was almost unanimous in its opinion that Council should retain and repair the pool. As a result, Council has budgeted $400,000 for the installation of a fibreglass liner to resolve the leak and an upgrade to the pump and filtration system for the pool when the pool does fail.

COMMUNITY HALLS There are 15 halls that are managed by Council or that have been vested to Council ownership. These range from large facilities such as the Taumarunui Memorial Hall and Miriama Community Centre to smaller, local, community-managed halls such as the Rangataua Hall.

Council’s Community Halls provide and maintain suitable and appropriate public venues throughout the District for local social, recreational, cultural, or educational purposes.

The Taumarunui War Memorial Hall is earthquake prone and booking numbers are very low. The future of the hall was therefore an issue that Council took to the community during consultation for the LTP 2018-28. As a result, Council decided that the Memorial Hall would be replaced with a multi-function facility and the Lower Lounge of the Taumarunui Cosmopolitan Club (now named the Miriama Community Centre) was purchased in 2019 to provide for a safer community facility in Taumarunui. The community has however formed a group to ensure the long term retention of the Taumarunui Memorial Hall, meaning that there are now two similar Council owned facilities in Taumarunui. More community engagement will need to take place before any action is taken to dispose of the Taumarunui War Memorial Hall.

Council has a small budget for the upkeep of the community-managed halls. This is set up as an annually contestable grant fund.

PUBLIC TOILETS The provision of public toilet facilities for residents and visitors is an important activity for Council, particularly in relation to public health and safety. Council funds the ongoing cost of cleaning, maintenance and depreciation.

61 CEMETERIES This service provides enquiry and burial services and burial administration and records for Council cemeteries. Council owns and maintains nine cemeteries in Manunui, Matiere, Ohakune, Ohura, Owhango, Raetihi, Rangataua, Raurimu and Taumarunui. Council also owns the closed cemetery at Tatu (not maintained). In the near future Council intends to investigate the provision of space for natural burials within the larger cemeteries.

Council has set aside $150,000 for the development of a new cemetery in Raetihi, as the current cemetery is running out of space for burials.

SOCIAL HOUSING Council owns a total of 81 individual social housing units constructed on six separate sites across the District; Raetihi – 16 units, Ohakune – 8 units, Taumarunui – 57 units (on four different sites).

Council adopted the Public and Affordable Housing Asset and Tenancy Management Strategy (ATMS) on 18 November 2020. One of the purposes of the strategy was to regenerate Council’s public (social) housing and where possible, through partnering, encourage an increase in fit for purpose public housing within the district, with an initial 10-year horizon. The strategy does not rely on Council being the ‘owner’ of the social housing asset, however it Council has confirmed during the workshops held to prepare for this AMP and the LTP that there is desire to hold onto the existing portfolio.

At the time of preparing this LTP, Council has been negotiating a possible $7.8M Crown Infrastructure Partner (CIP) funding agreement. A portion of this grant would be for the six new units to be developed adjacent to the existing Council units in Moore Street, Ohakune which would be owned and managed by Council. Master planning has been undertaken to provide for the relocation of existing tenants to the new units, and for the regeneration of the rest of the Moore Street site. A Taumarunui ‘Future Housing and Community Plan’ will be developed with local Iwi, community and stakeholders in 2021 which will provide direction for implementation projects to occur within year 2-5 of this LTP. A total of $400,000 over 2022-23 has been included for planning and design for housing outcomes from this plan.

Small housing initiatives in Raetihi and National Park Village will be scoped within the first five years of this Plan, with the possibility for Council land to be used in partnership with housing providers. No Council funding has been considered at this point in time.

ADMINISTRATION BUILDINGS AND LIBRARIES Each of the three administration buildings (Taumarunui, Raetihi and Ohakune) house a library, a Council Chamber and staff offices. Council’s provision of libraries sits under both Property activity (the buildings) and the Community Support activity (the service, incl. books, computers, children’s holiday programmes, etc).

OTHER PROPERTIES Council also owns the Taumarunui Aerodrome, Ohakune Railway Station, the former Taumarunui Saleyards and a number of other properties, such as forestry plantations and the former library building in Ohakune. For detailed information on these properties, please see the Community Property Asset Management Plan.

SIGNIFICANT NEGATIVE EFFECTS ON THE COMMUNITY Community Property buildings have significant environmental footprints with high power and water usages, and during development or renewal construction.

62 The cost to the ratepayer of maintaining facilities such as the Taumarunui Aerodrome and investment property and Community Facilities such as Swimming Pools. Assets that are used by a small number of residents and ratepayers but are of high importance to those that use the facilities. Potentially, some development or demolition/removal/disposal may be of concern to Iwi. A number of properties owned by Council, derived from Iwi or the Crown, may be of high cultural importance.

63 STATEMENT OF SERVICE PROVISION - COMMUNITY FACILITIES Recreation and Community Facilities Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. Vibrant and Diverse Living: • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and businesses is supported. Strong Leadership and Advocacy: • Council is proactive, transparent, accountable. Level of Service • Council will maintain and provide access to playgrounds, public green space, amenities, cemeteries and community halls • Amenities and facilities are provided that meet the needs and safety of the community • To provide Council buildings that are compliant with legislative requirements • To provide public toilets that are well maintained • To provide public toilets that are safe to use and in accessible locations • Provide prompt responses to requests for service • To provide Council buildings that are compliant with legislative requirements • Libraries, public meeting venues, administration buildings will be retained and well maintained • Housing units are maintained to a satisfactory standard and provide a safe environment for tenants • To provide social housing units that are fit for purpose • Airfield that is safe for authorised aircraft • Provide prompt responses to requests for service Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2023/24 2024/25 2025-28 2028-31 2020/21 COUNCIL WILL MAINTAIN AND PROVIDE ACCESS TO PLAYGROUNDS, PUBLIC GREEN SPACES, AMENITIES, LIBRARIES, AND COMMUNITY HALLS CEMETERIES Number of customer complaints on the maintenance of the Achieved <10 per <10 per <10 per <10 per <10 per <10 per District cemeteries 6 annum annum annum annum annum annum Percentage of cemetery assets in satisfactory condition Achieved >95 >95% >95% >95% >95% >95% (grades 1, 2 or 3) 97% Percentage of cemetery interment requests responded to Achieved 100% 100% 100% 100% 100% 100% within 24 hours 100% COMMUNITY HALLS Council managed community halls have the required Achieved 100% 100% 100% 100% 100% 100% building compliance and emergency evacuation procedures 100% in place. Percentage of Council managed community halls and Not achieved >95% >95% >95% >95% >95% >95% public toilets in satisfactory condition (grades 1,2 or 3) 90%

64 Recreation and Community Facilities Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. Vibrant and Diverse Living: • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and businesses is supported. Strong Leadership and Advocacy: • Council is proactive, transparent, accountable. Level of Service • Council will maintain and provide access to playgrounds, public green space, amenities, cemeteries and community halls • Amenities and facilities are provided that meet the needs and safety of the community • To provide Council buildings that are compliant with legislative requirements • To provide public toilets that are well maintained • To provide public toilets that are safe to use and in accessible locations • Provide prompt responses to requests for service • To provide Council buildings that are compliant with legislative requirements • Libraries, public meeting venues, administration buildings will be retained and well maintained • Housing units are maintained to a satisfactory standard and provide a safe environment for tenants • To provide social housing units that are fit for purpose • Airfield that is safe for authorised aircraft • Provide prompt responses to requests for service Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2023/24 2024/25 2025-28 2028-31 2020/21 1,337 out of 1,491 asset components in satisfactory conditions COMMUNITY HALLS, SWIMMING POOLS & PUBLIC TOILETS Full compliance with legislative requirements when Achieved 100% 100% 100% 100% 100% 100% undertaking repairs, refurbishing or demolition of buildings 100% including asbestos material. Safety defect requests attended and made safe at Achieved >90% 100% 100% 100% 100% 100% building within 4 hours 100% Safety defects are rectified (issue fully resolved) within 3 Achieved >85% 100% 100% 100% 100% 100% days 100% AMENITIES AND FACILITIES ARE PROVIDED THAT MEET THE NEEDS AND SAFETY OF THE COMMUNITY PLAYGROUNDS

65 Recreation and Community Facilities Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. Vibrant and Diverse Living: • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and businesses is supported. Strong Leadership and Advocacy: • Council is proactive, transparent, accountable. Level of Service • Council will maintain and provide access to playgrounds, public green space, amenities, cemeteries and community halls • Amenities and facilities are provided that meet the needs and safety of the community • To provide Council buildings that are compliant with legislative requirements • To provide public toilets that are well maintained • To provide public toilets that are safe to use and in accessible locations • Provide prompt responses to requests for service • To provide Council buildings that are compliant with legislative requirements • Libraries, public meeting venues, administration buildings will be retained and well maintained • Housing units are maintained to a satisfactory standard and provide a safe environment for tenants • To provide social housing units that are fit for purpose • Airfield that is safe for authorised aircraft • Provide prompt responses to requests for service Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2023/24 2024/25 2025-28 2028-31 2020/21 Percentage of playground assets complying with NZ Achieved 100% 100% 100% 100% 100% 100% Standards (annual audit) (Note 2) 100% PUBLIC TOILETS Percentage of public toilet related emergency requests for Achieved 90% 90% 90% 90% 90% 90% service responded to within 24 hours (Note 1) 100% Percentage of public toilet related urgent requests for Achieved 85% 85% 85% 85% 85% 85% service responded to within 48 hours (Note 1) 100% Number of customer complaints received Not achieved <20 per < 20 per < 20 per < 20 per < 20 per < 20 per 22 annum annum annum annum annum annum Any new public toilets provide safe environment for users Achieved >95% >95% >95% >95% >95% >95% 100% Percentage of public toilets inspected and cleaned daily in Not achieved >85% >85% >85% >85% >85% >85% all areas 68% PARKS AND RESERVES Users feel safe when using actively used domains and Achieved 85% 85% 85% 85% 85% 85% reserves 92%

66 Recreation and Community Facilities Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. Vibrant and Diverse Living: • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and businesses is supported. Strong Leadership and Advocacy: • Council is proactive, transparent, accountable. Level of Service • Council will maintain and provide access to playgrounds, public green space, amenities, cemeteries and community halls • Amenities and facilities are provided that meet the needs and safety of the community • To provide Council buildings that are compliant with legislative requirements • To provide public toilets that are well maintained • To provide public toilets that are safe to use and in accessible locations • Provide prompt responses to requests for service • To provide Council buildings that are compliant with legislative requirements • Libraries, public meeting venues, administration buildings will be retained and well maintained • Housing units are maintained to a satisfactory standard and provide a safe environment for tenants • To provide social housing units that are fit for purpose • Airfield that is safe for authorised aircraft • Provide prompt responses to requests for service Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2023/24 2024/25 2025-28 2028-31 2020/21 Number of customer complaints on the maintenance of Achieved <10 per <10 per <10 per <10 per <10 per <10 per the actively used domains and reserves 9 annum annum annum annum annum annum Percentage of parks assets in satisfactory condition (grades Not achieved >95% >95% >95% >95% >95% >95% 1, 2 or 3**) 88% LIBRARIES, PUBLIC MEETING VENUES AND ADMINISTRATION BUILDING WILL BE RETAINED AND WELL MAINTAINED BUILDINGS Council public buildings (including administration, library Achieved 100% 100% 100% 100% 100% 100% and information centres) have the required building 100% compliance in place. Full compliance with legislative requirements when 100% 100% 100% 100% 100% 100% 100% undertaking repairs, refurbishing or demolition of buildings including asbestos material. Safety defect requests attended and made safe at building Not achieved 90% 90% 90% 90% 90% 90% within 4 hours. -% One safety aspect not attended

67 Recreation and Community Facilities Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. Vibrant and Diverse Living: • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and businesses is supported. Strong Leadership and Advocacy: • Council is proactive, transparent, accountable. Level of Service • Council will maintain and provide access to playgrounds, public green space, amenities, cemeteries and community halls • Amenities and facilities are provided that meet the needs and safety of the community • To provide Council buildings that are compliant with legislative requirements • To provide public toilets that are well maintained • To provide public toilets that are safe to use and in accessible locations • Provide prompt responses to requests for service • To provide Council buildings that are compliant with legislative requirements • Libraries, public meeting venues, administration buildings will be retained and well maintained • Housing units are maintained to a satisfactory standard and provide a safe environment for tenants • To provide social housing units that are fit for purpose • Airfield that is safe for authorised aircraft • Provide prompt responses to requests for service Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2023/24 2024/25 2025-28 2028-31 2020/21 to within an hour Safety defects rectified (issue fully resolved) within 3 days Not Achieved 85% 85% 85% 85% 85% 85% -% One safety defect not fully resolved within 3 days (took 4 days) Percentage of Council buildings in satisfactory condition Achieved >95% >95% >95% >95% >95% >95% (grades 1,2 or 3). 99% I-SITES AND SERVICE CENTRES Visitor information and service centre users are satisfied or Achieved 75% 75% 75% 75% 75% 75% highly satisfied with buildings 83% LIBRARY FACILITY Percentage of library users who are satisfied or highly Achieved 75% 75% 75% 75% 75% 75% satisfied with public library facility 90%

68 Recreation and Community Facilities Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. Vibrant and Diverse Living: • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and businesses is supported. Strong Leadership and Advocacy: • Council is proactive, transparent, accountable. Level of Service • Council will maintain and provide access to playgrounds, public green space, amenities, cemeteries and community halls • Amenities and facilities are provided that meet the needs and safety of the community • To provide Council buildings that are compliant with legislative requirements • To provide public toilets that are well maintained • To provide public toilets that are safe to use and in accessible locations • Provide prompt responses to requests for service • To provide Council buildings that are compliant with legislative requirements • Libraries, public meeting venues, administration buildings will be retained and well maintained • Housing units are maintained to a satisfactory standard and provide a safe environment for tenants • To provide social housing units that are fit for purpose • Airfield that is safe for authorised aircraft • Provide prompt responses to requests for service Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2023/24 2024/25 2025-28 2028-31 2020/21 AIRFIELD THAT IS SAFE FOR AUTHORISED AIRCRAFT AERODROME Percentage compliance of the Taumarunui Aerodrome with Achieved 100% 100% 100% 100% 100% 100% Civil Aviation Authority (CAA) safety requirements 100% HOUSING UNITS ARE MAINTAINED TO A SATISFACTORY STANDARD AND PROVIDE A SAFE ENVIRONMENT FOR TENANTS SOCIAL HOUSING All social housing units are proactively inspected annually 100% 100% 100% 100% 100% 100% 100% Percentage of residents who feel safe in their homes Achieved 95% 95% 95% 95% 95% 95% 93% Percentage of residents are satisfied or very satisfied with Achieved 90% 90% 90% 90% 90% 90% LoS (Note 3) 91% Percentage of social housing units in satisfactory condition Achieved 95% 95% 95% 95% 95% 95% (grades 1, 2 or 3). 97% Percentage utilisation rates of social housing units available Achieved 90% 80% 85% 90% 95% 95% to use 95% BUILDINGS AND SOCIAL HOUSING

69 Recreation and Community Facilities Outcome(s) Safe, healthy communities: • Excellent standards of safety and welfare are promoted and respected. Vibrant and Diverse Living: • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and businesses is supported. Strong Leadership and Advocacy: • Council is proactive, transparent, accountable. Level of Service • Council will maintain and provide access to playgrounds, public green space, amenities, cemeteries and community halls • Amenities and facilities are provided that meet the needs and safety of the community • To provide Council buildings that are compliant with legislative requirements • To provide public toilets that are well maintained • To provide public toilets that are safe to use and in accessible locations • Provide prompt responses to requests for service • To provide Council buildings that are compliant with legislative requirements • Libraries, public meeting venues, administration buildings will be retained and well maintained • Housing units are maintained to a satisfactory standard and provide a safe environment for tenants • To provide social housing units that are fit for purpose • Airfield that is safe for authorised aircraft • Provide prompt responses to requests for service Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2023/24 2024/25 2025-28 2028-31 2020/21 % of requests responded to within 3 days (excluding Not achieved 80% 80% 80% 80% 80% 80% safety defects) 44%

Notes: **International Infrastructure Management Manual condition grades 1–Very good, 2–Good, 3–Moderate, 4-Poor 5-Very poor. 1 Future targets decreased to reflect ability of contractors to respond and requirements of contract obligations. 3 Future targets increased to reflect responsibility of Principal under new Health & Safety Act. 4 Future targets increased to closer reflect actual performance.

70 FUNDING IMPACT STATEMENT (RECREATION AND COMMUNITY FACILITIES AND COMMUNITY PROPERTY ACTIVITIES COMBINED) Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding General rates, uniform annual general 3,256 3,378 3,517 3,683 3,887 4,217 4,537 4,672 4,788 4,960 5,082 charges, rates penalties Targeted rates ------

Subsidies and grants for operating purposes 3 5 5 5 6 6 6 6 6 6 7

Fees and charges 490 555 595 587 604 648 637 655 705 693 711

Internal charges and overheads recovered ------

Local authorities fuel tax, fines, infringement ------fees, and other receipts Total Operating Funding (A) 3,749 3,938 4,117 4,275 4,497 4,871 5,180 5,333 5,499 5,659 5,800

Applications of Operating Funding Payments to staff and suppliers 3,033 3,163 3,249 3,339 3,431 3,526 3,613 3,711 3,813 3,916 4,017 Finance costs 49 74 106 128 219 364 450 490 530 558 584

Internal charges and overheads applied 339 364 395 423 429 446 475 479 492 508 509

Other operating funding applications ------

Total applications of operating funding (B) 3,421 3,601 3,750 3,890 4,079 4,336 4,538 4,680 4,835 4,982 5,110

Surplus (deficit) of operating funding (A-B) 328 337 367 385 418 535 642 653 664 677 690

Sources of capital funding

71 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Subsidies and grants for capital expenditure - 1,400 ------

Development and financial contributions ------

Increase (decrease) in debt 1,610 1,338 803 1,303 5,837 4,570 (235) 587 (240) (243) (246) Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) 1,610 2,738 803 1,303 5,837 4,570 (235) 587 (240) (243) (246)

Applications of capital funding Capital expenditure - to meet additional demand 1,154 - 165 582 3,922 4,484 ------to improve the level of service 453 2,732 741 823 1,765 358 138 966 145 150 154 - to replace existing assets 67 244 109 73 553 60 62 64 65 67 69 Increase (decrease) in reserves 264 99 155 210 15 203 207 210 214 217 221 Increase (decrease) of investments ------Total applications of capital funding (D) 1,938 3,075 1,170 1,688 6,255 5,105 407 1,240 424 434 444

Surplus (deficit) of capital funding (C-D) (328) (337) (367) (385) (418) (535) (642) (653) (664) (677) (690)

Funding Balance ((A-B)+(C-D)) ------

72 COMMUNITY SERVICES

COUNCIL’S LONG-TERM FOCUS IS TO ASSIST COMMUNITIES IN THE DEVELOPMENT AND MANAGEMENT OF THEIR OWN FUTURES, WHILE ENSURING THAT THE HEALTH AND SAFETY AND AMENITY NEEDS OF THE COMMUNITY ARE MET.

COMMUNITY WELL-BEING OUTCOMES

Social Cultural Environmental Economic Leadership

THERE ARE THREE ACTIVITIES IN THE COMMUNITY SERVICES GROUP: • Community Support: library services, visitor services, Civil Defence Emergency Management services • Leadership: governance and advocacy (Mayor, Council and Community Boards), and strategic development (economic, policy, Iwi partnership, business and youth) • Regulation: Council has a statutory obligation to provide regulatory services.

ASSETS RELATING TO COMMUNITY SERVICES The assets related to this group of activities are mostly buildings and therefore primarily fall under the Community Property and Recreation Facilities activity. For example, while the provision of library services falls under community services, the library buildings (and the Council admin buildings within which the libraries are located) are managed by the Community Property and Recreation Facilities team. Likewise the i-Sites.

Civil Defense Emergency Management does not hold any significant assets. The Leadership and Regulation activities do not hold any significant assets.

There are no significant projects for the Community Support activity in excess of $500,000 planned for 2021-31.

73 COMMUNITY SUPPORT

THE PURPOSE OF LOCAL GOVERNMENT IS TO PROVIDE GOOD QUALITY LOCAL INFRASTRUCTURE, PUBLIC SERVICES AND REGULATORY FUNCTIONS AT THE LEAST POSSIBLE COST TO HOUSEHOLDS AND BUSINESS. IN RELATION TO COMMUNITY SUPPORT FUNCTIONS, THE KEY WORDS ARE ‘LOCAL’ (TO DIFFERENTIATE FROM SERVICES BETTER PROVIDED BY CENTRAL GOVERNMENT) AND ‘PUBLIC’ WHICH MEANS THAT COUNCILS SHOULD NOT TRY TO REPLACE SERVICES PROVIDED BY THE PRIVATE SECTOR.

For Ruapehu District Council, those services that fall within the Community Support activity are: • Emergency Management (Civil Defence) • Libraries • I-Sites • Regional Tourism Organisation

EMERGENCY MANAGEMENT Council is an active member of the Manawatu-Wanganui Civil Defence Emergency Management (CDEM) Group, as required by the CDEM Act 2002. This group maintains a Plan that considers all phases of emergency – the 4 Rs: reduction, readiness, response and recovery. A business plan is also managed by the group, with each of the member councils contributing to achieving the goals of the group. The group’s approach is “centralised co- ordination and local delivery”, and works closely with emergency services, welfare agencies.

Council staff and volunteers are trained at various levels of competency in readiness for any civil defence emergency within the district. The aim is to improve consistency in approach and to provide additional resources to enhance the level of readiness and response capability throughout the district and the region

The increasing impact of climate change has a direct impact on the emergency management activity of Council. There have been numerous weather events which have required emergency management support. Some recent examples include: • COVID-19 responses • Water outrages in Taumarunui

Council will continue to resource this function to cope with future events and achieve compliance with the Civil Defence Act 2002.

LIBRARY SERVICES Ruapehu Community Libraries are situated in Taumarunui, Ohakune and Raetihi. The library buildings are managed by the Community Property activity, but the library services (books, computers, children’s holiday programmes, etc.) fall within the Community Support activity. Council also supports the community libraries in Ohura and Waiouru with grants each year.

I-SITES There are three i-Sites in the District; Taumarunui, Whakapapa, and Ohakune. I-Sites provide local information and booking services to visitors. The Visitor Information Centre in Raetihi receives grant funding from Council.

REGIONAL TOURISM ORGANISATION A Regional Tourism Organisation (RTO) is responsible for promoting the region at both a domestic and international level. There are RTOs all across New Zealand. Council contracts out the RTO function because it believes that people who have worked in the industry can deliver the services better and more efficiently than Council could.

The RTO for Ruapehu is Visit Ruapehu. Visit Ruapehu supports the tourism infrastructure of the district and works with local, regional and national partners. Council considers Visit

74 Ruapehu to be an essential part of its economic and community development strategy, particularly the promotion of Ruapehu as a visitor destination, both for the domestic and international markets, in partnership with operators/providers.

SIGNIFICANT NEGATIVE EFFECTS ON THE LOCAL COMMUNITY

EMERGENCY MANAGEMENT AND LIBRARY SERVICES There are no significant negative effects on the community from the provision of these services.

I-SITES AND REGIONAL TOURISM ORGANISATION (RTO)/VISIT RUAPEHU The i-Sites and the Visit Ruapehu work together to encourage visitors to the District and to ensure that have a fantastic time while they are here.

The results of their efforts have been paying off with increases in both visitor numbers and length of stay.

While this increase is good for the local economy it also places extra pressure on the local infrastructure (roads, waste management, water and wastewater). Our growth-driven infrastructure demands could be a rate burden on our communities as we work to fund renewal and improvements to meet increasing standards such as those in the waters.

By way of mitigation, Council actively pursues funding support from central government so that the cost of infrastructure upgrades is not borne entirely by the ratepayer.

75 STATEMENT OF SERVICE PROVISION – COMMUNITY SUPPORT Emergency Management Community Well-being Outcome(s) Safe, healthy communities • Excellent standards of safety and welfare are promoted and respected • Preparation, planning and timely responses protect people and property from natural hazards Level of Service • Council will provide Civil Defence and Emergency Management for the District Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Percentage of staff who are adequately trained Achieved 85% 70% 70% 70% 70% 70% 70% in an approved emergency response training programme. Undertake 5 or more presentations or events Not Achieved >5 >5 >5 >5 >5 >5 within the community to raise awareness of Civil 3 Defence. (Covid 19 response stopped community events) Have trained volunteer community Civil Defence 3 Achieved 4 2 3 4 4 4 teams in the district. Respond to hazardous substance emergencies Achieved 100% 100% 100% 100% 100% 100% within two hours from notification. 100%

Library Service Community Well-being Outcome(s) Vibrant and Diverse Living: • Traditions, values and history of all ethnic groups are respected. • Activities, facilities and opportunities for youth are provided and supported. • Excellence and achievement in sport, arts/cultural pursuits, community service and business is supported. Level of Service • Provide a library service that meets the needs of the community. Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Percentage of users who are satisfied with the Achieved 75% 75% 75% 75% 75% 75% service provided. 77.2% Increase in number of active library members Not Achieved +1% on +1% Per +1% Per +1% Per +1% Per +1% Per 2.1% (1,494) prior year’s Year Year Year Year Year The COVID-19 membershi lockdown p prevented active members from

76 borrowing books. Ebook users are not represented in these stats.

Visitor Information Centres (I-Sites) Community Well-being Outcome(s) Thriving, Natural Environment • The promotion of our District includes focus on our natural rivers, bush and mountains, as well as the built heritage, agriculture and railways. Level of Service • i-SITES are open 40 hours minimum per week. Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Booking transactions (sales) increase Not Achieved +2% +2% +2% +2% +2% +2% -16.2% Covid-19 affected tourism and economy in general. Customer Satisfaction with i-Site service from Achieved >/=85% >/=85% >/=85% >/=85% >/=85% >/=85% Customer Radar. 90%

Regional Tourism Organisation/Visit Ruapehu Community Well-being Outcome(s) Thriving economy • Economic diversity and core economic strengths are encouraged in partnerships with others Thriving natural environment • The promotion of our district includes focus on our natural rivers, bush and mountains as well as the built heritage, agriculture and railways. Vibrant and diverse living . Traditions, values and history of all ethnic groups are respected . Events and festivals are encouraged and supported Level of Service Visit Ruapehu Regional Tourism Organization (RTO) will proactively promote the destination to Domestic and International markets. Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Domestic tourism awareness of Ruapehu Achieved +2% +0.5% +0.5% +0.5% +0.5% +0.5% grows against the 2016 benchmark of 14% 24% International tourism awareness of Not measured +1% +0.5% +0.5% +1% +1% +1% Ruapehu grows against the 2016 COVID-19 stopped all benchmark of 3%. international tourism marketing efforts. Therefore this activity was not measured.

Notes 1 Due to COVID-19, the KPI for International tourism awareness has been reduced for years 2021/22 and 2022/23 of the LTP.

77 FUNDING IMPACT STATEMENT - COMMUNITY SUPPORT Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding General rates, uniform annual general 2,671 3,284 3,445 3,583 3,635 3,713 3,861 3,926 4,025 4,134 4,190 charges, rates penalties Targeted rates 588 597 615 632 651 670 688 708 729 750 770 Subsidies and grants for operating purposes ------Fees and charges 684 114 130 149 172 200 208 214 220 226 232 Internal charges and overheads recovered ------

Local authorities fuel tax, fines, infringement ------fees, and other receipts

Total Operating Funding (A) 3,943 3,995 4,190 4,364 4,458 4,583 4,757 4,848 4,974 5,110 5,192

Applications of Operating Funding Payments to staff and suppliers 2,640 2,601 2,666 2,733 2,804 2,877 2,946 3,021 3,093 3,172 3,251 Finance costs 1 1 2 2 2 2 3 3 4 4 4 Internal charges and overheads applied 1,167 1,254 1,359 1,459 1,478 1,536 1,635 1,650 1,694 1,750 1,754 Other operating funding applications ------Total applications of operating funding (B) 3,808 3,856 4,027 4,194 4,284 4,415 4,584 4,674 4,791 4,926 5,009

Surplus (deficit) of operating funding (A-B) 135 139 163 170 174 168 173 174 183 184 183

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------

78 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) increase (decrease) in debt 68 100 11 (9) (13) 16 12 10 (13) 30 (32) Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) 68 100 11 (9) (13) 16 12 10 (13) 30 (32)

Applications of capital funding Capital expenditure - to meet additional demand ------to improve the level of service 44 107 39 14 25 37 49 49 34 33 16 - to replace existing assets 90 65 67 80 71 84 75 77 79 127 83 Increase (decrease) in reserves 69 67 68 67 65 63 61 58 57 54 52 Increase (decrease) of investments ------Total applications of capital funding (D) 203 239 174 161 161 184 185 184 170 214 151

Surplus (deficit) of capital funding (C-D) (135) (139) (163) (170) (174) (168) (173) (174) (183) (184) (183)

Funding Balance ((A-B)+(C-D)) ------

79 LEADERSHIP

THE LOCAL GOVERNMENT ACT 2002 (LGA) SETS OUT THE ROLE AND PRINCIPLES OF LOCAL GOVERNMENT AS WELL AS GOVERNANCE AND MANAGEMENT PRINCIPLES.

The following principles from the Local Government Act 2002 guide both the governance and the strategic development functions of Council. Council must: • Exercise activities for the benefit of the District. • Conduct its business in an open and transparent manner, giving effect to desired Outcomes. • Seek and consider the views of its communities and their wellbeing in decision-making. • Provide opportunities for Māori to contribute in decision-making. • Collaborate with other organisations to meet desired outcomes. • Ensure prudent financial and asset stewardship in accordance with sound business practice, including periodically assessing the expected returns from any commercial activity and assessing risk.

Provide for the present and future needs of the District by considering social, economic, cultural interests of the community and the need to maintain the environment for present and future generations.

The Leadership Activity is divided into two key areas: Governance - Council and Community Boards Strategic Development- Economic development, Business development, Policy development, Youth Development and Iwi development.

COMMUNITY WELL-BEING OUTCOMES

GOVERNANCE

COUNCIL Council is made up of eleven elected members from across the District and the Mayor. Councillors are elected to represent both their Ward and the whole District. While equitable representation is critical (ie. they are elected as representatives of their Ward) when they are sitting as Council to make governance decisions they do so with consideration of the outcomes for the whole district. Council recently resolved to establish Māori wards.

Council’s focus is strategic direction, policy and an overview of the financial position of Council.

COMMUNITY BOARDS Community Boards are Ward-based and serve an important function in the district. Their role is to be the advocate for their local community (Ward) to Council, to stay involved and engaged with issues “on the ground” and communicate those concerns to Council.

Community Boards members are elected every three years by their Ward constituents as part of local body elections. One or two District Councillors also sit on the Community Boards.

In the Ruapehu District we have two community boards, National Park (NPCB) and Waimarino/Waiouru (WWCB). In the North there is a different arrangement for Ward representation called the Taumarunui/Ohura Ward Committee (TOWC). The TOWC is made

80 up of all of the Northern Ward Councillors, ie, the Elected Members from both the Taumarunui and Ohura Wards. There are no other elected or appointed “committee members”.

STRATEGIC DEVELOPMENT

ECONOMIC DEVELOPMENT This group of activities promotes the Community Well-being Outcomes that mainly target environmental, social and economic objectives

POLICY DEVELOPMENT Council develops bylaws, strategies and policies to provide practical solutions, guidance and consistency in direction setting and decision making with the purpose of achieving balanced wellbeing outcomes for the district.

YOUTH DEVELOPMENT Council values youth input in decision making and acquires this through the Ruapehu Youth Council. The Facilitator of the Ruapehu Youth Council also engages with external youth development agencies, projects and schools.

DEVELOPING RELATIONSHIPS AND ENGAGING WITH MĀORI The Local Government Act 2002 (LGA) provides for Māori to participate in Council’s decision making processes and requires Council to foster the development of Māori capacity to ensure that this is effective, this also includes its obligations to the principles of the Treaty of Waitangi. Other statutory obligations to Māori are further acknowledged in the Resource Management Act 1991, and a number of Treaty settlements statues.

Council acknowledges its statutory obligations to Māori and is committed to building capacity to encourage greater participation, and ensure engagement is meaningful and effective. In 2009, Council formally appointed the Ruapehu District Māori Council as a platform to allow for this. Representation on the Ruapehu District Māori Council is made up of various Iwi and Hapū, and regular hui are held over a six to eight weekly cycle. In total, the number of hui held on average per year is about seven. During this time, Members have established a Strategic Development Plan and signed a Memorandum of Understanding with Council.

With the progression of Treaty settlements over recent years, Iwi and Hapū have sought to review their representation on the Ruapehu District Māori Council, which has resulted in some indicating a preference to have direct relationships with Council, rather than engaging in a collective forum. Council recognises that this is an evolving space and acknowledges that it may be timely to look at establishing other relationship arrangements, for example co- governance and co-management structures that are a better fit for Māori.

To do this however, Council recognising the need to resource the capacity of this work and is committed to doing so. At an operations level, regular hui are being held with various Iwi representatives, and Council staff anticipate that these hui will extend to all Iwi and/or Hapū authorities across the district in the near future. The hui have been mutually beneficial, as this has enabled Council to inform Iwi on matters that are of specific interest, and as a result, this has enabled Council to receive feedback in a timelier manner. Council is also working alongside various Iwi and Hapū on a number of community projects happening across the district.

Council will continue to support Iwi pre and post Treaty settlements and is committed to strengthening relationships going forward. Council acknowledges the importance of strengthening relationships with Māori, as this is a means to enhance communications, provide better opportunities to enable active participation in its decision making processes, and ensure their interests are considered across the day to day business of Council.

SIGNIFICANT NEGATIVE EFFECTS There are no significant negative effects on the community of the Leadership Activity of Council.

81

82 STATEMENT OF SERVICE PROVISION – LEADERSHIP Leadership - Governance Community Well-being Outcome(s) Vibrant and Diverse Living: • Traditions, values and history of all ethnic groups are respected. Strong Leadership and advocacy: • Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services. • Council is proactive, transparent and accountable Level of Service • Council provides public access to the community through Community Boards and Council meetings. • Residents are satisfied with the leadership of Council. Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Number of Public Forums per year. Achieved >40 >40 >40 >40 >40 >40 41 Percentage of respondents who are satisfied with Achieved 60% 60% 60% 60% 60% 60% Council’s overall leadership and performance. 75.53%

Leadership - Strategic Development Outcome(s) Vibrant and Diverse Living: • Traditions, values and history of all ethnic groups are respected. • Activities, facilities and opportunities for youth are provided and supported. Strong Leadership and advocacy: • Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services. • Council is proactive, transparent, and accountable. Level of Service • Progress the Accelerate 25 Ruapehu Regional Visitor Development Plan and the Economic Development Strategy • Council meets regularly with Iwi/Hapū • Consultation material will be made publicly available from all Council offices and on its website • Activities, facilities and opportunities for youth are provided and supported Key Performance Indicator(s) Actual Annual Target Target Target Target Target 2019/20 Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Economic and Business Development

83 Continue to progress the Accelerate 25 Ruapehu Achieved 3 additional 3 additional 3 additional 3 additional 9 additional 9 Regional Visitor Development Plan by increasing the 3 actions actions actions actions actions (3 additional number of priority actions achieved each year. per year) actions (3 per year) Continue to progress the Economic Development Achieved 3 additional 3 additional 3 additional 3 additional 9 additional 9 Strategy by increasing the number of priority actions 3 actions actions actions actions actions (3 a additional achieved each year. year) actions (3 a year) Iwi Development Number of meetings with Iwi/ per year. Achieved >6 >6 >6 >6 >18 >18 6 Policy Development Percentage of respondents who are satisfied or very Not 80% 80% 80% 80% 80% per 80% per satisfied with consultations. Achieved year year 67.6% Youth Development* Support the Ruapehu Youth Council to hold 18 Achieved 18 18 18 18 18 per year 18 per year meetings a year. 20 Support the Ruapehu Youth Council to hold two Achieved 2 2 2 2 6 6 community events per year (at least). 2

84 FUNDING IMPACT STATEMENT – LEADERSHIP

Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan

20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31

($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Sources of Operating Funding General rates, uniform annual general 1,888 1,787 1,867 1,937 2,019 2,086 2,159 2,206 2,266 2,329 2,370 charges, rates penalties Targeted rates 331 296 330 366 376 387 398 410 422 434 446

Subsidies and grants for operating purposes - 33 34 35 ------

Fees and charges 1 1 35 1 2 41 2 2 47 2 2 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement ------fees, and other receipts Total Operating Funding (A) 2,220 2,117 2,266 2,339 2,397 2,514 2,559 2,618 2,735 2,765 2,818

Applications of Operating Funding Payments to staff and suppliers 1,767 1,632 1,740 1,774 1,825 1,919 1,926 1,979 2,079 2,088 2,139 Finance costs ------

Internal charges and overheads applied 452 485 526 565 572 595 633 639 656 677 679

Other operating funding applications ------

Total applications of operating funding (B) 2,219 2,117 2,266 2,339 2,397 2,514 2,559 2,618 2,735 2,765 2,818

Surplus (deficit) of operating funding (A-B) 1 ------

Sources of capital funding

85

Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan

20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31

($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Subsidies and grants for capital expenditure ------Development and financial contributions ------increase (decrease) in debt ------Gross proceeds from sale of assets ------Lump sum contributions ------

Total sources of capital funding (C) ------

Applications of capital funding Capital expenditure - to meet additional demand ------to improve the level of service ------to replace existing assets ------Increase (decrease) in reserves 1 ------Increase (decrease) of investments ------

Total applications of capital funding (D) 1 ------

Surplus (deficit) of capital funding (C-D) (1) ------

Funding Balance ((A-B)+(C-D)) ------

86 REGULATION

THE REGULATION ACTIVITY SEEKS TO FACILITATE A SAFE AND SUSTAINABLE COMMUNITY THROUGH THE ADMINISTRATION AND ENFORCEMENT OF LAWS MADE BY CENTRAL GOVERNMENT. THIS INCLUDES THE SUSTAINABLE MANAGEMENT AND USE OF NATURAL RESOURCES UNDER THE RESOURCE MANAGEMENT ACT 1991 AND DISTRICT BYLAWS.

Council is required by a number of laws to provide Regulatory services. These laws include, but are not limited to, • The Local Government Act 2002, • The Resource Management Act 1991 • The Dog Control Act 1996, • The Building Act 2004, • The Health Act 1956, • The Sale and Supply of Alcohol Act 2012, and • The Food Act 2014.

As well as enforcing many Central Government laws, Council has to enforce its own Bylaws. A bylaw is a local law, specific to a region, district or city.

COMMUNITY WELL-BEING OUTCOMES

The Regulation group is made up of the following teams:

BUILDING SERVICES The Building Services team inspects all building works and relocated buildings to ensure they meet the Building Act 2004 and Building Code requirements.

RESOURCE MANAGEMENT The Resource Management team coordinates both the issuing of resource consents and monitoring the conditions of these consents, in line with relevant legislation (primarily the Resource Management Act 1991 and the District Plan.

The District Plan is one of Council’s key planning documents that sets out the rules and policies that guide development in the district. The Resource Management Act 1991 requires that the District Plan to be reviewed every ten years. Because of the size and complexity of a District Plan review, Council will do a ‘rolling review’ of discrete sections as required to satisfy the prescribed review process.

ENVIRONMENTAL HEALTH AND ALCOHOL LICENCING This activity has a number of functions, including food safety, alcohol licensing, making sure premises and events comply with regulatory standards, as well as monitoring environmental issues and investigating complaints. The team ensures that health and safety of the public are protected by ensuring that food and alcohol premises comply with legal requirements under the Sale and Supply of Alcohol Act 2012, the Health Act 1956 and the Food Act 2014.

87 COMPLIANCE The Compliance Team ensures compliance with Council’s Bylaws, the District Plan and legislation such as the Dog Control Act 1996. The role is varied and includes • Animal Control, • Parking, • Noise Control • Bylaws

The Compliance Officer’s role is to promote a safe and happy community by educating the public about local bylaws and other community-focused legislation. They also have the responsibility to monitor and enforce these laws and bylaws when necessary.

SIGNIFICANT NEGATIVE EFFECTS There are no significant negative effects on the community as a result of the Regulatory Activity of Council.

88 STATEMENT OF SERVICE PROVISION – REGULATION Community Well-being Outcome(s) Safe, healthy communities: • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. • Excellent standards of safety and welfare are promoted and respected. Thriving, Natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meets required standards. Strong Leadership and advocacy: • Council is proactive, transparent and accountable. Thriving Economy: • Regulatory services and reliable infrastructure help the economy prosper. • Economic diversity and core economic strengths are encouraged in partnership with others. • Planning and regulatory functions balance economic growth and environmental protection. Level of Service • Council will effectively process all proposed applications. • Council will undertake ongoing monitoring of conditions to ensure compliance. • Ensure alcohol licensing complies with statutory and licensing provisions. • Ensure noise complaints are responded to effectively, promptly and efficiently • Resource consents are processed within the legal timeframes. • The public is informed about Resource Management processes and other issues related to maintaining a sustainable environment Key Performance Indicator(s) Actual 2019/20 Annual Target Target Target Target Target Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 BUILDING SERVICES Building Consents processed within 20 working days from Achieved 100% 100% 100% 100% 100% 100% request 100% Code Compliance Certificates issued within 20 working Achieved 100% 100% 100% 100% 100% 100% days from request 100%

Urgent LIMs processed in five working days from valid Achieved 100% 100% 100% 100% 100% 100% application 100%

Non-Urgent LIMs processed in ten working days from valid Achieved 95% 95% 95% 95% 95% 95% application* 96.49% ANIMAL CONTROL Respond to dog attacks within two hours of receiving the Achieved 100% 100% 100% 100% 100% 100% complaint 100% Percentage of All Registered Dogs by 30 June Achieved 50% 50% 50% 50% 50% 50% 58%

89 Community Well-being Outcome(s) Safe, healthy communities: • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. • Excellent standards of safety and welfare are promoted and respected. Thriving, Natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meets required standards. Strong Leadership and advocacy: • Council is proactive, transparent and accountable. Thriving Economy: • Regulatory services and reliable infrastructure help the economy prosper. • Economic diversity and core economic strengths are encouraged in partnership with others. • Planning and regulatory functions balance economic growth and environmental protection. Level of Service • Council will effectively process all proposed applications. • Council will undertake ongoing monitoring of conditions to ensure compliance. • Ensure alcohol licensing complies with statutory and licensing provisions. • Ensure noise complaints are responded to effectively, promptly and efficiently • Resource consents are processed within the legal timeframes. • The public is informed about Resource Management processes and other issues related to maintaining a sustainable environment Key Performance Indicator(s) Actual 2019/20 Annual Target Target Target Target Target Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 ENVIRONMENTAL HEALTH Health-related food hygiene complaints are responded to Achieved 95% 95% 95% 95% 95% 95% within 24 hours working weekdays and 72 hours 100% weekends and actioned within five days. Percentage of food premises complying with Achieved 90% 90% 90% 90% 90% 90% improvements requested by Environmental Health Officer 96% at second inspection. ALCOHOL LICENCING Percentage of alcohol licenses that comply with statutory Not achieved 95% 95% 95% 95% 95% 95% and licence conditions on first inspection. 89% Businesses that have failed to comply with these requirements were also those who have also appeared before the District Licensing

90 Community Well-being Outcome(s) Safe, healthy communities: • Quality regulation, regulatory services and infrastructure. • Core infrastructure endeavours to keep pace with changing demand. • Excellent standards of safety and welfare are promoted and respected. Thriving, Natural Environment: • Our environment is accessible, clean and safe and our water, soil and air meets required standards. Strong Leadership and advocacy: • Council is proactive, transparent and accountable. Thriving Economy: • Regulatory services and reliable infrastructure help the economy prosper. • Economic diversity and core economic strengths are encouraged in partnership with others. • Planning and regulatory functions balance economic growth and environmental protection. Level of Service • Council will effectively process all proposed applications. • Council will undertake ongoing monitoring of conditions to ensure compliance. • Ensure alcohol licensing complies with statutory and licensing provisions. • Ensure noise complaints are responded to effectively, promptly and efficiently • Resource consents are processed within the legal timeframes. • The public is informed about Resource Management processes and other issues related to maintaining a sustainable environment Key Performance Indicator(s) Actual 2019/20 Annual Target Target Target Target Target Plan 2021/22 2022/23 2023/24 2024-27 2027-31 2020/21 Committee on more than one occasion. HEALTH RELATED NOISE Less than 2 health related noise complaints received a Achieved <2 <2 <2 <2 <2 <2 second time <2 RESOURCE MANAGEMENT Land Use consents processed within the legal Achieved 100% 100% 100% 100% 100% 100% 100% timeframes. Subdivision consents processed within the legal Achieved 100% 100% 100% 100% 100% 100% 100% timeframes. Percentage of pre-application meetings to number of Achieved >10% >10% >10% >10% >10% >10% applications received. 56% *While Council strives to meet the statutory 10 working day processing timeframe, until LIM’s are available electronically, there is always a potential delay through unforeseen lack of human resourcing somewhere in the process.

91 FUNDING IMPACT STATEMENT - REGULATION Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding General rates, uniform annual general 1,902 2,069 2,173 2,280 2,315 2,385 2,489 2,524 2,578 2,647 2,677 charges, rates penalties Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges 976 1,040 1,070 1,101 1,133 1,166 1,198 1,233 1,269 1,306 1,341 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement ------fees, and other receipts Total Operating Funding (A) 2,878 3,109 3,243 3,381 3,448 3,551 3,687 3,757 3,847 3,953 4,018

Applications of Operating Funding Payments to staff and suppliers 1,705 1,849 1,892 1,943 1,990 2,040 2,089 2,142 2,190 2,244 2,299 Finance costs ------

Internal charges and overheads applied 1,174 1,260 1,351 1,438 1,458 1,511 1,598 1,615 1,657 1,709 1,719

Other operating funding applications ------Total applications of operating funding (B) 2,879 3,109 3,243 3,381 3,448 3,551 3,687 3,757 3,847 3,953 4,018

Surplus (deficit) of operating funding (A-B) (1) ------

Sources of capital funding Subsidies and grants for capital expenditure ------

92 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Development and financial contributions ------increase (decrease) in debt - 7 ------Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) - 7 ------

Applications of capital funding Capital expenditure - to meet additional demand ------to improve the level of service ------to replace existing assets - 7 ------Increase (decrease) in reserves (1) ------Increase (decrease) of investments ------Total applications of capital funding (D) (1) 7 ------

Surplus (deficit) of capital funding (C-D) 1 ------

Funding Balance ((A-B)+(C-D)) ------

93

PART 3:

PLANNING

ASSUMPTIONS,

POLICIES AND

STRATEGIES

94 SIGNIFICANT ASSUMPTIONS & POPULATION PROJECTIONS 2021-31

PART ONE

PURPOSE The purpose of the significant assumptions and population projections is to provide realistic, evidence based, well planned and researched forecast assumptions to underpin Council’s Long Term Plan 2021 - 2031, and specifically, the Asset Management Plans. These planning assumptions are to be used in the forward planning for the population, infrastructure and economy of the Ruapehu District. Forecasting assumptions are important pieces of information in their own right as population shifts cause change in demand and is therefore a major driver of expenditure. Growth and decline do not always have a linear relationship to changes in levels of demand on a service and it is therefore necessary to analyse at a local level with local knowledge, verified by authentic data. METHOD AND ASSOCIATION LIMITATIONS The assumptions in this document have been formulated using the results from a number of sources, most of which are solely reliant on Statistics New Zealand (StatsNZ). Given the lower than expected return rate of the 2018 census (90% in 2018 compared to 94% in 2013)1, StatsNZ had to delay the release of many data sets, including population projections.

Given the aforementioned delay, combined with a regional attitude of distrust in the StatsNZ methodology2, it was proposed to jointly purchase population and household projections for all territorial authorities and two (of three three) DHBs within the Horizons region (unfortunately, excluding the Waikato District Health Board). Both Berl and Infometrics have been contracted to produce projections for the region with the former utilising building consents as one of the base data sets for its population projections. The later proposed to base its population projections on employment projections for each council in the region, offering an additional data set for future planning. Data sources used to produce these planning assumptions are listed below. A complete list of resources can be found in the reference section of this document.

(a) Statistics New Zealand (b) Infometrics (c) Berl (d) Profile ID, Community ID (e) Ministry of Business, Innovation and Employment (f) Department of Conservation (g) Treasury (h) Multiple local tourism operators (i) Visit Ruapehu (j) Ruapehu District Council (i) Out of District Rate Payer Survey (ii) Rating database (iii) Building database

1 https://www.stats.govt.nz/news/update-on-release-of-2018-census-data 2 Anecdotal

95 LIMITATIONS All assumptions made in this document contain some inherent uncertainty. The uncertainty has been minimised by utilising and cross referencing as many data sources and reputable opinions as possible. Since February 2020, the level of uncertainty has been increased by the world wide outbreak of the COVID-19 pandemic and the subsequent nationwide lockdown. The effects of the pandemic on the District and these assumptions are discussed further in this document.

TO NOTE As at 1 January 2018, the area unit classification was replaced by the statistical area 2 (SA2) classification. Additionally, the boundaries of many area units/statistical areas were altered. The 13 area units of 2013 (and previous census) have been replaced with 10 statistical areas. The amalgamation of areas and boundary changes have been listed below. For a visual representation of the following changes, visit https://datafinder.stats.govt.nz/ or https://profile.idnz.co.nz/ruapehu/census-2018

2013 AREA UNIT SIZE (SQ KM) 2018 SA2 SIZE (SQ KM)

Otangiwai – Heao: 345.67 SQ KM Otangiwai – Ohura: 2011.70 SQ KM Ohura: 3.25 SQ KM

Ngapuke: 1285.11 SQ KM Ngapuke: 621.83 SQ KM

Tarrangower: 3.17 SQ KM Taumarunui North: 3.595 SQ KM

Taumarunui Central: 6.88 SQ KM Taumarunui Central: 5.54 SQ KM Sunshine – Hospital Hill: 5.15 SQ KM

Manunui: 5.04 SQ KM Taumarunui East: 4.52 SQ KM

Raurimu: 1366.36 SQ KM

203 National Park: 0.89 SQ KM National Park: 1375.28 SQ KM

Owhango: 0.93 SQ KM

Tangiwai: 2693.58 SQ KM Tangiwai: 2696.63 SQ KM

Raetihi: 3.89 SQ KM Raetihi: 3.86 SQ KM

Ohakune: 8.47 SQ KM Ohakune: 6.44 SQ KM

Waiouru: 5.79 SQ KM Waiouru: 5.01 SQ KM

Change from Area Unit to SA2

96 PART TWO- SUMMARY OF SIGNIFICANT PLANNING ASSUMPTIONS

POTENTIAL LEVEL OF ASSUMPTION AREA DETAILS OF POTENTIAL RISK + REASON FINANCIAL CERTANTY CONSEQUENCE LEGISLATIVE / CENTRAL GOVERNMENT

There is potential risk that upwards of $465,000 in rates arrears is wiped. This will have a potentially The proposed Local Government significant impact on Council’s need to plan for development and an eventual change in land use and potential Neutral Moderate (Rating of Whenua Maori) increase in rating base. Amendment Bill is passed The assumption has been made that writing off arrears will not affect rates as it will be an accounting book Likely Low entry only The assumption has been made that there will be a complete restructure and implementation of system-wide Taumata Arowai—the Water reforms to regulate drinking water and source water, and targeted reforms to improve the regulation and Services Regulator Act 2020 is performance of wastewater and stormwater networks. The second Bill will outline the exact effect this new Very likely Significant passed legislation will have on territorial authorities. There is a significant risk that this will alter Water Services LoS, challenge current infrastructure and staffing levels.

This Act provides a funding and financing model for the provision of infrastructure for housing and urban Infrastructure Funding and development and will reduce the impact of local authority financing and funding constraints. While the Unlikely Low Financing Act 2020 is passed assumption has been made that it is unlikely that RDC will utilise these provisions during the next planning period, it is however important to note.

Potential Resource Management It is assumed that amendments will be made to the RMA however, these changes will more likely target large Likely Moderate Act Amendments development projects in high density areas therefore have little effect on the Ruapehu District.

The assumption has been made that due to the recent declaration of a Climate Emergency by Central Declaration of Climate Government, and the ongoing effects that Climate Change will have on Ruapehu's infrastructure and Very likely Moderate Emergency economy, resourcing will need to be made available in order to develop an appropriate Climate Emergency response. Climate change response continues to dominate legislative reform and in turn, expectations and responsibilities of Local Authorities are shifting. The amendments made to the Act provide a framework and commission through which New Zealand can develop and implement "clear and stable climate change Climate Change Response (Zero policies" that contribute to the global effort under the Paris Agreement. The Act itself identifies Council as a Very likely Moderate Carbon) Amendment Act 2019 Reporting Organisation which means that Council may be called upon by the Minister or Commission to provide information on Climate Change Adaptation. The assumption has been made that resourcing will need to be made available in order to meet these expectations. COVID-19 New Zealand borders will remain There is a risk that there will be no international tourists or visitors to the area until at least June 2021, and closed to international tourists Very Likely Significant potentially longer. Until this time, foreign tourist spending the District will remain nil. and visitors until at least 2021

97 POTENTIAL LEVEL OF ASSUMPTION AREA DETAILS OF POTENTIAL RISK + REASON FINANCIAL CERTANTY CONSEQUENCE Another outbreak of COVID will usher in another level 3 - 4 lock There is a risk that a level 3 or 4 lock down will be imposed on Ruapehu communities. Likely Significant down Levels of Service The assumption has been made that there will be no changes to levels of service. Likely Low

POPULATION / GROWTH

The assumption has been made that all identified communities (SA2's) within the District will experience an Increase in Usually Resident increase in Usually Resident Population (URP) over the next 10 years, experiencing a mixture of low, medium Population (URP) in all townships and high growth levels. Likely Moderate (SA2's) within the District - The URP of townships within the District will experience yearly growth ranging from 0.7% - 1.967% per year. - The total District URP is expected to increase 15% between 2021 - 2031.

Proportion of under 5's and over The assumption has been made that, District wide, under a medium growth scenario, the proportion of under Likely Low 70's set to increase 5's and over 75's is set to increase 57% and 45% respectively.

The assumption has been made that the Peak Population (combination of URP, Holiday Homes, Commercial Increase in Peak Population in all Accommodation, and Day Visitors) will increase in all identified communities (SA2's) within the District. Likely Moderate townships within the District - The Peak Population of all townships will experience yearly growth ranging from 0.77% - 2.2% per year. - The total District Peak Population is set to increase 12% between 2021 - 2031.

INFRASTRUCTURE

The assumption has been made that low quality asset condition assessments will lead to poor infrastructure Highly Likely Moderate – Significant capital decision making.

The assumption has been made that excepting water infrastructure, all other assets will deliver the required Likely Moderate level of service over their documented useful life as reflected in the Revenue And Financing Policy. Assets and asset lives (replacement, revaluation, Revaluation of fixed assets is done annually for property. It includes an assessment of the useful (economic) depreciation) life of the asset. This is in accordance with the Council’s accounting policies detailed under “Property, Plant and Equipment and Infrastructural Assets” which includes further detail of revaluation policies and the Likely Moderate estimated useful life of various assets. The revaluations are based on the BERL inflation rates. The revaluation impact is broadly equivalent to the increase in the Local Government Cost Index. Depreciation rates on planned asset acquisitions are based on an average percentage of their components Likely Moderate and the estimated useful life of the various assets. State highway 4 (Whanganui- There is a risk that compromised access to and through SH4 could lead to economic impacts resulting from Unlikely Low Raetihi Road) short term interruption and loss of economic opportunity.

98 POTENTIAL LEVEL OF ASSUMPTION AREA DETAILS OF POTENTIAL RISK + REASON FINANCIAL CERTANTY CONSEQUENCE The assumption has been made that the Capital work programme estimates and MBIE funding are not Ohakune Water Treatment Plant Likely Significant sufficient to complete all elements of proposed works and ratepayers will need to part fund this

The assumption has been made that ongoing subdivisions in Ohakune will cause additional pressures on 3 Subdivisions and Land Use Likely Significant waters infrastructure resulting in Council not being able to consent buildings. It has been assumed that all resource consents will be renewed but in many cases, with increasing Resource Consents environmental standards. The expected time to obtain resource consents is factored into project timelines Likely Significant and the increased standards. The assumption has been made that the number of rateable assessments will continue to experience small Rateable Assessments Likely Neutral scale growth of approximately 0.16% ECONOMY Tourism and visitor numbers The assumption has been made that International borders will remain closed, international tourist numbers Extremely continue to rely on domestic remain nil into the near future. Local tourism operators rely solely on domestic tourism for the foreseeable Significant Likely tourism future. The number of holiday homes will The assumption has been made that pre-COVID, holiday home numbers were set to increase approx. 1.21% continue to increase in each of on average per year. Throughout COVID this is unlikely, however, this trend is expected to return with the Likely Moderate the three major urban areas recommencement of a fully functioning tourism economy. NATURAL ENVIRONMENT Small natural disasters can be funded out of budgetary provisions. Council will require financial and other Occurrence of Natural Disasters Likely Significant assistance from Central Government for large-scale events or disasters. Seasonal projections show winter rainfall increasing by 7-16% in Taumarunui by 2090. It is unclear what this Increase in rainfall increase looks like out to 2031. There is not enough data to plan for increase/decrease in rainfall in other Neutral Moderate areas. This in itself is a risk. Increase in average annual Temperatures are likely to be 0.7˚C to 1.1˚C warmer by 2040 effecting evapotranspiration of soil and dams Neutral Moderate temperature as well as snow days. A reduction in the number of snow days experienced annually is projected; potentially effecting local Decrease in snowfall Likely Moderate – Significant economies reliant on snow seeking visitors.

FINANCIAL It has been assumed that rates receivable as a percentage of rates will remain at current levels. There is a risk that rates receivables are significantly higher than that forecast due to a number of reasons, such as the Rates Receivables (Debtors) Neutral Moderate effect of COVID 19 and economic issues. This would impact on cash flow requirements, increasing borrowing for operational costs.

99 POTENTIAL LEVEL OF ASSUMPTION AREA DETAILS OF POTENTIAL RISK + REASON FINANCIAL CERTANTY CONSEQUENCE The forecast financial statements are based on the assumption that Council will be able to claim 74% of all maintenance and renewal costs for district roads in line with currently known NZTA work categories and classifications.

Forecast co-investment from Waka Kotahi NZTA may be reduced due to impact from COVID-19. Council's financial assistance rate will increase to 75% in 2021/22 for local roads and 100% for Special purpose roads, with local roads reducing to 74% thereafter. External Funding For Roads Likely Significant

Should the outcome result in less roading expenditure items being covered by the subsidy, the work programme for roading could be impacted.

Any decrease in funding would require modification to planned projects and work programmes and may result in delays to both. Where it is not possible to decrease funding, there is the potential to impact on borrowing and rates. Vested Assets The assumption has been made that no Vested Assets have been budgeted over the next ten years Neutral Low While it is expected that Council will receive some Government funding for Land Transport, Housing, Cycle Trails and Three Waters and possibly other capital projects over the next ten years, the lack of certainty Government subsidies Low Moderate around this means that (and the assumption has been made) no subsidies have been factored into the budgets The preparation of the budget has included inflation assumptions based on BERL forecasting for the Local Government Sector. There is a high level of uncertainty associated with these inflation assumptions. If the impact of inflation on Council's budgets turns out to be higher than forecast and Council does not wish to Inflation Likely Moderate generate additional revenue by increasing rates, then either additional operational efficiencies or reduction in service levels or planned capital expenditure would need to be considered. Should the impact of inflation be lower than forecast, there will be a favourable impact on Council's operating and capital expenditure budgets.

There is a strong chance that additional funding support from Central Government will be available to fast track drinking water reform changes. However, this LTP cannot include this possibility with key assumptions due to timing of any such announcements. As affordability has been removed from Local Government as a CAPEX Feasibility - Three defence, RDC has forecast considerable debt impacts to Council as full compliance is an absolute non- Likely Significant Waters negotiable now. The assumption has been made that practical delivery against the very ambitious LTP works forecast will face the challenges of supply chain constraints, and active monitoring will be required to minimise the risk of non-compliance by due dates.

100 POTENTIAL LEVEL OF ASSUMPTION AREA DETAILS OF POTENTIAL RISK + REASON FINANCIAL CERTANTY CONSEQUENCE With regards to Land Transport, there is a well-established supply chain, and committed funding. There is potential that some bridge work not covered by NZTA will require RDC to fund which it would do through debt. These are one off items in what is otherwise a very stable work program. A number of Township Revitalisation outcomes that are to be debt funded to account for inter-generational equity. These would go ahead in consultation with community regardless of external funding, but Council is very open to using proposed CAPEX Feasibility - Other Works Likely Moderate budgets as 'seed funding' with other partners to deliver further value than forecast. However, 3rd party investment cannot be assumed in this LTP, and as such counts as 100% RDC investment. Practical delivery will have strong political and community support, and supply chain issues are somewhat lessened in this activity due to lower competition for resources from out of district or competing priorities. The assumption has been made that these the capital works costs will not vary significantly from those budgeted The interest rates used are based on an estimate of what will occur in the future combined with known rates that are currently fixed under current borrowings with the LGFA which Council joined in 2018. The assumption has been made that all borrowings will be renewed under similar terms and conditions except that interest Interest rates rates applied to replacement and new borrowings annually will range from 1.7% to 3.4% in year ten of the Likely Moderate - Significant LTP 2021-31. There is a high degree of uncertainty around borrowing costs due to the fluctuations of interest rates. Interest costs and debt repayment have been estimated in accordance with the Treasury Investment and Liability Management Policy. Overview of Planning Assumptions

LEVEL OF CERTAINTY POTENTIAL FINANCIAL CONSEQUENCE 5 – Very likely Significant 4 – Likely Moderate 3 – Neutral Low 2 – Unlikely 1 – Very unlikely

101 PART THREE- BASE INFORMATION FOR PLANNING ASSUMPTION

LEGISLATIVE/ CENTRAL GOVERNMENT Over the past decade there has been a substantial increase in the level of delegation from central government to local government through legislative reforms. In almost all cases there has been little funding provided to develop the policy and/or deliver these new services. This has meant that the services have had to be funded from efficiency gains, local user charges, and an increase in rates, or a combination of all these mechanisms. In some instances there has been a need to increase resources, such as staff, consultants and contractors.

The following legislative changes have been identified as possible risks to RDC and therefore considered in the planning assumptions.

LOCAL GOVERNMENT (RATING) ACT 2002 Proposed changes to the Local Government (Rating) Act 2002 will reduce rating barriers for owners of Māori land who want to use and develop their whenua (land). Currently, unpaid rates arrears prevent the development of Māori land. Under the proposal, local authority Chief Executives will have the power to write off rates arrears on all land (including general land) if they consider the rates are unrecoverable, including rates arrears inherited from deceased owners of Māori land. Most of the rates arrears on Māori freehold land are on unused land and the majority of this is from non-payment of penalties rather than the original rates bills. For example, in the Ruapehu District, there is a 4000sq m parcel with annual rates of $823.05 and rates arrears of $56,623.18. Of that overdue amount, only $5,863.66 is made up of rates charges and $50,553.78 is made up of penalties. As at June 2020: • There are 755 Māori Freehold rating units in the district making up 8% of all rating units. • There are 9,134 General rating units (9889 total rateable units). These 755 Māori Freehold rating units comprise 111,000ha, 16% of all total land in the Ruapehu District (673,315ha total). • Of these 755 Māori Freehold rating units, 318 are non-rateable or receive a full rates remission under Councils current Category A Maori Land Rates Remission Policy. • Of the 9,134 General rating units 535 are non-rateable, (22 of these being 50% non-rateable). • Of the 437 rateable Māori Freehold units, 54 (12%) are in rate arrears, totalling $465,000. å • Of the 8,598 rateable General rating units, 252 (3%) are in rates arears, totalling $1,387,000. It is important to note that an unknown number of General rating units may have been at some stage, Māori Freehold land.

Area of Impact: Urban, commercial and rural development, Māori Economic Development, Environmental Planning Forecasted Assumption(s): There is potential risk that upwards of $465,000 in rates arrears is wiped. This will have a potentially significant impact on Council’s need to plan for development and an eventual change in land use and potential increase in rating base. The assumption has been made that writing off arrears will not affect rates as it will be an accounting book entry only Level of certainty: Likely Potential Financial Consequence: Low - Moderate

TAUMATA AROWAI – THE WATER SERVICES REGULATOR BILL AND SUBSEQUENT BILLS The Taumata Arowai – Water Services Regulator Bill implements the Government’s decision to create a new regulatory body to oversee, administer, and enforce the drinking water regulatory system. This bill will establish Taumata Arowai, the Water Services Regulator, as a new Crown agent and provides for its objectives, functions, operating principles, and governance arrangements3. It is expected that

3 http://www.legislation.govt.nz/bill/government/2019/0202/latest/LMS294345.html

102 Taumata Arowai will ‘go live’ on or before July 2021. This Bill will be complemented by a separate Bill that will give effect to decisions to implement system-wide reforms to the regulation of drinking water and source water, and targeted reforms to improve the regulation and performance of wastewater and stormwater networks. The second Bill will outline the exact effect this new legislation will have on territorial authorities. • Expectations (financial and otherwise) of RDC not entirely clear as yet. • Shared service model likely to be most common option for small Territorial Authorities such as RDC.

Area of Impact: Water Services, Finance, Environmental Planning, Human Resources Forecasted Assumption(s): The assumption has been made that there will be a complete restructure and implementation of system-wide reforms to regulate drinking water and source water, and targeted reforms to improve the regulation and performance of wastewater and stormwater networks. The second Bill will outline the exact effect this new legislation will have on territorial authorities. Significant risk that this will alter Water Services LoS, challenge current infrastructure and staffing levels. Level of certainty: Very Likely Potential Financial Consequence: Significant

INFRASTRUCTURE FUNDING AND FINANCING BILL This bill would establish a new funding and financing model to support the provision of infrastructure for housing and urban development. The new model intends to address the challenges local authorities face in relation to financing housing-related infrastructure and supply serviced urban land4. It sets up a flexible, legislative framework that will enable councils and developers to overcome one of the key constraints they face and provides them with a new tool to fund and finance infrastructure without being hindered by financing constraints, or high upfront infrastructure costs; it does this by allowing a third party, other than a council, to finance the construction of infrastructure5.

The funding and financing model proposed is the Special Purpose Vehicle (SPV). A SPV is a separate legal entity created by an organisation with its own assets. The bill enables SPVs, which are companies, limited partnerships, Crown entities, or other persons to: • Be responsible for both financing and construction of the infrastructure assets. • Service the finance raised to cover the costs of the infrastructure via the levy.

Area of Impact: Three Waters, Roading, Environmental Planning Forecasted Assumption: The assumption has been made that it is unlikely that RDC will utilise these provisions during the next planning period, it is however important to note that they are available to Council. Level of certainty: Neutral Potential Financial Consequence: Low

POTENTIAL RESOURSE MANAGEMTN ACT AMENDMENTS It is assumed that amendments will be made to the RMA however, these changes will more likely target large development projects in high density areas therefore have little effect on the Ruapehu District.

Area of Impact: Environmental Planning (District Plan) Forecasted Assumption: It is assumed that amendments will be made to the RMA however, these changes will more likely target large development projects in high density areas therefore have little effect on the Ruapehu District. Level of certainty: Likely Potential Financial Consequence: Moderate

4 https://www.parliament.nz/en/pb/sc/make-a-submission/document/52SCTI_SCF_BILL_93461/infrastructure-funding-and-financing-bill 5 https://www.parliament.nz/en/pb/hansard-debates/rhr/combined/HansDeb_20191217_20191217_48

103 DECLARATION OF CLIMATE EMERGENCY Following the warmest winter on record and 1,800 jurisdictions in 32 countries world-wide, New Zealand’s government declared a Climate Emergency and committed to a carbon-neutral government by 2025.

Area of Impact: All Council operations Forecasted Assumption: The assumption has been made that due to the recent declaration of a Climate Emergency by Central Government, and the ongoing effects that Climate Change will have on Ruapehu's infrastructure and economy, resourcing will need to be made available in order to develop an appropriate Climate Emergency response. Level of certainty: Very Likely Potential Financial Consequence: Moderate

CLIMATE CHANGE RESPONSE (ZERO CARBON) AMENDMENT ACT 2019 Climate change response continues to dominate legislative reform and in turn, expectations and responsibilities of Local Authorities are shifting. The amendments made to the Act provide a framework and commission through which New Zealand can develop and implement "clear and stable climate change policies" that contribute to the global effort under the Paris Agreement. The Act itself identifies Council as a Reporting Organisation which means that Council may be called upon by the Minister or Commission to provide information on Climate Change Adaptation.

Area of Impact: Policy and Planning Forecasted Assumption: The assumption has been made that resourcing will need to be made available in order to meet these expectations. Level of certainty: Very Likely Potential Financial Consequence: Moderate

COVID-19 The worldwide outbreak of COVID-19 has added to the unpredictability of the planning environment. There is a risk for another level 3 – 4 lock down to occur in New Zealand which will significantly affect Ruapehu communities and also that international tourists will not return to NZ until 2021/22.

Area of Impact: All Council Activities Forecasted Assumption: The assumption has been made that New Zealand borders will remain closed to international tourists and visitors until at least 2021/22. Level of certainty: Likely Potential Financial Consequence: Significant

POPULATION Identifying shifts in populations amongst town and village centres, including the demographics of said populations, is an important mechanism with which to measure projected dependency on vital assets. Peak population is the fundamental tool used to plan for the usage of key infrastructure and assets within the District. The peak population of the Ruapehu District has been calculated by combining Usually Resident Population (URP), Holiday Home visitor numbers (HH), Commercial Accommodation visitor numbers (CAM) and Day Visitor numbers (DV). Each of these measurements are important in their own right and are therefore discussed and explored both separately and collectively. This subsection briefly analyses past population and demographic shifts in addition to providing population projections at a District and SA2 level.

Forecasted Assumption(s): 1. The assumption has been made that all identified communities (SA2's) within the District will experience an increase in Usually Resident Population (URP) over the next 10 years, experiencing a mixture of low, medium and high growth levels. The URP of townships within the District will experience yearly growth ranging from 0.7% - 1.967% per year. The total District URP is expected to increase 15% between 2021 – 2031

104 2. The assumption has been made that the Peak Population (combination of URP, Holiday Homes, Commercial Accommodation, and Day Visitors) will increase in all identified communities (SA2's) within the District. - The Peak Population of all townships will experience yearly growth ranging from 0.77% - 2.2% per year. - The total District Peak Population is set to increase 12% between 2021 – 2031 3. The assumption has been made that, District wide, under a medium growth scenario, the proportion of under 5's and over 75's is set to increase 57% and 45% respectively. Level of certainty: Likely Potential Financial Consequence: Moderate

USUALLY RESIDENT POPULATION: DEMOGRAPHICS PAST AND PRESENT The first component of peak population that is explored is that of Usually Resident Population (URP); those who permanently reside in the Ruapehu District. This section explores past and present URP demographics and is then followed by URP projections.

AT A GLANCE: Ruapehu District Manawatū-Whanganui New Zealand Number of people 12,309 238,797 4,699,755 Median age 39.0 years 39.4 years 37.4 years Males 6,288 117,123 2,319,558 Females 6,021 121,671 2,380,197 Number of Māori 5,337 54,570 775,836 Māori median age 27.0 years 25.0 years 25.4 years Overview of District Demographics

Statistics New Zealand, InfoShare 6 , have estimated that the population of the Ruapehu District decreased from 15,550 in 2000 to 13,150 in 2010. Shifting focus to the past decade, the District’s population continued to decline until 2013 where it seems to have plateaued. We are now expecting to experience small scale growth similar to that experienced 2013 – 2020.

Ruapehu 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 District Past 13,150 12,950 12,600 12,450 12,500 12,550 12,650 12,700 12,750 12,750 12,800 Population Estimates Ruapehu Past Population Estimates

6 http://infoshare.stats.govt.nz/ViewTable.aspx?pxID=11a49800-c875-49a8-844d-18e0ae71d282

105 Past Population Estimates 13,400

13,200

13,000

12,800

12,600

12,400

12,200

12,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

AGE AND SEX An integral part, however not the sole focus, of projecting the demographic makeup of our communities lies in understanding our past. The following tables compare results of the past three census (2006, 2013, and 2018) via ‘service age groups’. Service age groups are one of many groupings that can be used to compare shifts in population and are particularly useful when taking into account services that each age group are more/less prone to utilising. Please note that when comparing the below, not all service age groups are dispersed evenly in terms of years.

Age structure - Service age 2006 2013 2018 groups7 Service age group (years) No# RDC NZ % No# RDC NZ % No# RDC NZ % % % %

Babies and Pre-schoolers 1,026 7.6 6.8 1,002 8.5 6.9 900 7.3 6.3 (0 to 4) Primary Schoolers (5 to 11) 1,653 12.2 10.1 1,251 10.6 9.4 1,389 11.3 9.6 Secondary Schoolers 1,389 10.2 9.2 1,014 8.6 8.3 870 7.1 7.7 (12 to 17) Tertiary education and 1,149 8.5 9.6 1,005 8.5 9.6 918 7.5 9.3 independence (18 to 24) Young workforce (25 to 34) 1,593 11.7 12.9 1,296 10.9 12.1 1,557 12.6 14.1 Parents and homebuilders 2,997 22.1 22.6 2,205 18.6 20.6 2,079 16.9 19.3 (35 to 49) Older workers and pre-retirees 1,734 12.8 12.1 1,767 14.9 13.2 1,761 14.3 13.0 (50 to 59) Empty nesters and retirees 1,062 7.8 8.1 1,290 10.9 10.1 1,647 13.4 10.4 (60 to 69) Seniors (70 to 84) 837 6.2 7.2 852 7.2 8.0 1,023 8.3 8.5 Elderly aged (85 and over) 132 1.0 1.4 165 1.4 1.7 165 1.3 1.8 Total population 13,572 100.0 100.0 11,847 100.0 100.0 12,309 100.0 100.0 Summary of Past Service Age Groups

7 Profile ID

106 The above table in summary:

SERVICE AGE GROUP (YEARS)8 2006 2013 2018 Babies and Pre-schoolers (0 to 4) 1,026 1,002 900 Primary Schoolers (5 to 11) 1,653 1,251 1,389 Secondary Schoolers (12 to 17) 1,389 1,014 870 Tertiary education and independence (18 to 24) 1,149 1,005 918 Young workforce (25 to 34) 1,593 1,296 1,557 Parents and homebuilders (35 to 49) 2,997 2,205 2,079 Older workers and pre-retirees (50 to 59) 1,734 1,767 1,761 Empty nesters and retirees (60 to 69) 1,062 1,290 1,647 Seniors (70 to 84) 837 852 1,023 Elderly aged (85 and over) 132 165 165 Total population 13,572 11,847 12,309 Summary of Past Service Age Groups Simplified

Service Age Groups 2006 -2018

2018 2013 2006

Elderly aged (85 and over)

Seniors (70 to 84)

Empty nesters and retirees (60 to 69)

Older workers and pre-retirees (50 to 59)

Parents and homebuilders (35 to 49)

Young workforce (25 to 34)

Tertiary education and independence (18 to 24)

Secondary Schoolers (12 to 17)

Primary Schoolers (5 to 11)

Babies and Pre-schoolers (0 to 4)

0 500 1,000 1,500 2,000 2,500 3,000 3,500

The three tables above illustrate that; • Of the population shift between 2006 and 2018, a significant proportion of departures from the District were aged 5 – 17 and 35 – 49. • The proportion of those aged 60 – 84 grew significantly. • Between 2006 – 2018, there was little change in the proportional make up of those aged 50 – 59. This information suggests that most remained in the District and then moved into the next service age group (60 - 69) which saw the largest proportional growth of all of the service age groups.

8 Profile ID

107 The following tables break the 2018 population down into male-female demographics and is compared to national statistics for a reference point9. Historically, the census has only measured Male-Female sex.

2018 SERVICE AGE GROUPS BY SEX10 Service age group (years) Female RDC % NZ % Male (#) RDC % NZ % (#) Babies and Pre-schoolers (0 to 4) 426 117.1 6 471 7.5 6.5 Primary Schoolers (5 to 11) 657 10.9 9.2 732 11.6 10 Secondary Schoolers (12 to 17) 441 7.3 7.4 429 6.8 7.9 Tertiary education and 405 6.7 8.9 510 8.1 9.7 independence (18 to 24) Young workforce (25 to 34) 771 12.8 14 783 12.5 14.2 Parents and homebuilders 1056 17.6 19.6 1023 16.3 19 (35 to 49) Older workers and pre-retirees 867 14.4 13.2 894 14.2 12.8 (50 to 59) Empty nesters and retirees 798 13.3 10.5 849 13.5 10.3 (60 to 69) Seniors (70 to 84) 489 8.1 8.9 534 8.5 8.2 Elderly aged (85 and over) 102 1.7 2.2 63 1 1.4 2018 Service Age Groups by Sex

2018 Service Age Groups by Sex

Elderly aged (85 and over) Seniors (70 to 84) Empty nesters and retirees (60 to 69) Older workers and pre-retirees (50 to 59) Parents and homebuilders (35 to 49) Young workforce (25 to 34) Tertiary education and independence (18 to 24) Secondary Schoolers (12 to 17) Primary Schoolers (5 to 11) Babies and Pre-schoolers (0 to 4)

0 200 400 600 800 1000 1200

Male (Number) Female (Number)

9 The census currently only allows sex to be recorded as male or female. 10 Profile ID, https://profile.idnz.co.nz/ruapehu/service-age-groups?BMID=30&Sex=2

108 Summary of male-female demographics in the Ruapehu District 2018: • The most significant gap between the sexes is seen in the ‘18 – 24’ service age group where males outnumber females by 105. This trend has remained constant within the District since 2006. • Nationally, men outnumber women in the first five service age groups (0 - 34) and women outnumber men in the last five (35 – 85+). In the Ruapehu District this initial trend is not so apparent however, women do outnumber men in 4 of the last 5 service age groups (35 – 85+).

ETHNICITY, CULTURE AND IDENTITY The following information regarding ethnicity, culture and identity has been collected from Stats NZ and Profile.ID. The information has been collated from questions asking the respondent to classify their ethnic group. It is therefore important to note that results are subjective, and somewhat open to interpretation, particularly regarding each person's understanding of the term "ethnicity". The recording of ethnicity is a multi-response question in that more than one ethnicity can be selected. Of 12,309 respondents, 14,778 responses were recorded.

Those of European decent continue to dominate Ruapehu demographics while those of Māori decent continue to increase, be it slowly. The significant decrease in those identifying as ‘other ethnicities’ may be due to the fact that the options of “New Zealand European” and “Pakeha” were not available in 2006 (and earlier census’) and were available/measured in 2013 and 2018.

The Māori ethnicity is significantly more dominant in the Ruapehu compared to the national rate of 16.5%. Asian and Pacific Peoples ethnic groups are significantly lower than the national rate of 15.1% and 8.1% respectively.

Ruapehu Ethnic Groups 2006–18 12 2006 (%) 2013 (%) 2018 (%) European 62.9 69.5 68.8 Māori 39.2 42.5 43.4 Pacific peoples 2.2 2.3 2.8 Asian 2.1 2.9 3.4 Middle Eastern/Latin American/African 0.2 0.1 0.5 Other Ethnicity 10.9 1.5 1.2 Ruapehu Ethnic Groups

Ethnicity

European Māori Pacific peoples Asian

Middle Eastern/Latin American/African Other ethnicity

12 Profile ID, https://profile.idnz.co.nz/ruapehu/ethnic-group?BMID=30&Sex=2 and STATSNZ https://www.stats.govt.nz/tools/2018- census-place-summaries/ruapehu-district#ethnicity-culture-and-identity

109 EMERGING GROUPS: The largest changes in ethnic group responses between 2013 and 2018 were: • European (+576 responses) • Maori (+513 responses) • Asian (+93 responses) • Pacific peoples (+87 responses)

While 89.4% of Ruapehu residents were born in New Zealand, 10.6% were born overseas; significantly less than the national rate of 27.4%13.

Ruapehu residents born overseas 2006 2013 2018

United Kingdom 396 360 393 Australia 168 141 198 South Africa 81 90 99 India 24 51 93 Philippines 12 33 54 Netherlands 48 39 39 People's Republic of China 21 27 33 Germany 21 18 30 Thailand 0 18 27 United States of America 33 27 27 Fiji 21 39 27 Canada 30 21 21 Russia 0 6 18 Cook Islands 9 6 15 Argentina 0 0 12 Ireland 0 12 12 Malaysia 9 6 12 Ruapehu Residents Born Overseas

• Migrant’s from 16 of the 17 above groups increased or remained the same between 2013 – 2018. • Between 2006 – 2018 the largest increase in migrants born in another country residing in the Ruapehu are from India (+69).

13 Stats NZ, https://www.stats.govt.nz/tools/2018-census-place-summaries/ruapehu-district#ethnicity-culture-and-identity

110 Statistics NZ recently released population estimates and projections by ethnicity as follows. Projected Māori population 1996 2001 2006 2013 2018 2023 2028 2033 2038 High 5,950 6,470 6,870 7,330 7,870 Medium 6,770 6,030 5,460 5,330 5,660 5,840 5,820 5,780 5,730 Low 5,370 5,200 4,800 4,350 3,850

Projected Asian population 1996 2001 2006 2013 2018 2023 2028 2033 2038 High 630 850 1,030 1,220 1,400 Medium 330 320 310 410 560 690 770 850 910 Low 490 540 540 520 500

Projected Pacific population 1996 2001 2006 2013 2018 2023 2028 2033 2038 High 370 440 510 610 740 Medium 350 290 330 310 340 370 400 430 470 Low 320 300 280 260 240

COMPONENT 1: ESTIMATED PROJECTED POPULATION – USUALLY RESIDENT POPULATION (URP) Council engaged with Infometrics to provide the projected population for the Ruapehu District out to 2053. Staff utilised this information in order to prepare projected population at SA2 levels out to 2031. Due to COVID, Infometrics have since provided three sets of possible projections all of which offer low, medium and high growth level scenarios. Utilising the second set of projections, the projected growth of the District has been prepared assuming a mixture of low, medium and high levels of growth across the District. Under all three projected scenarios, the URP is set to steadily increase overall between 2021 and 2031. • Under the high growth scenario, annual increases range between 1.739% and 1.967% • Under the medium growth scenario, there is an annual increase of between 0.969% and 1.592% • Under the low growth scenario, there is an annual increase of between 0.700% and 1.361%

PROJECTED GROWTH: RUAPEHU DISTRICT URP 2021 - 2031 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 13,238 13,483 13,727 13,997 14,272 14,520 14,806 15,077 15,354 15,635 15,922 Med 13,004 13,132 13,259 13,463 13,671 13,845 14,058 14,282 14,510 14,741 14,975 Low 12,932 13,024 13,115 13,285 13,458 13,631 13,808 13,996 14,187 14,380 14,575

Projected Growth: Ruapehu District URP 2021 - 2031

111 PROJECTED GROWTH 2021 - 2031 16,500 16,000 15,500 15,000 14,500 14,000 13,500 13,000 12,500 12,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

High Medium Low

Forecasting further ahead, the trend of slow but steady growth lessens and under the low growth scenario, small scale decline begins to feature from 2043 at a rate of -0.144% and from 2048 at a rate of 0.299%.

PROJECTED GROWTH: RUAPEHU DISTRICT URP 2020 - 2053 2020 2021 2022 2023 2028 2033 2038 2043 2048 2053 HIGH 12,994 13,238 13,483 13,727 15,077 16,458 17,827 18,975 19,783 20,445 MEDIUM 12,877 13,004 13,132 13,259 14,282 15,418 16,454 17,120 17,319 17,357 LOW 12,841 12,932 13,024 13,115 13,966 14,917 15,766 16,190 16,074 15,834

Projected Growth: Ruapehu District URP 2021 – 2053

PROJECTED GROWTH: RUAPEHU DISTRICT URP 2020 - 2053 22000 20000 18000 16000 14000 12000 10000 2020 2021 2022 2023 2028 2033 2038 2043 2048 2053

HIGH MEDIUM LOW

% INCREASE BASED ON ABOVE ASSUMPTIONS (RDC 2020 - 2053) 19-20 20-21 21-22 22-23 23-28 28-33 33-38 38-43 43-48 48-53 HIGH 1.915 1.879 1.845 1.811 1.967 1.833 1.663 1.288 0.852 0.669 MEDIUM 0.998 0.988 0.978 0.969 1.543 1.592 1.343 0.810 0.233 0.043

112 LOW 0.715 0.710 0.705 0.700 1.298 1.361 1.139 0.538 -0.144 -0.299

Percentage Increase of Projected URP year on year 2020 - 2053

USUALLY RESIDENT POPULATION: PROJECTED GROWTH BY SA2 As of November 2020, recommended growth levels to determine peak population have been revised to reflect the potential effects of COVID-19. The following eight tables are recorded as a collective (table 16).

NATIONAL PARK 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 1114 1135 1156 1177 1200 1224 1244 1268 1291 1315 1339 1364 MEDIUM 1104 1115 1126 1137 1154 1172 1186 1204 1223 1243 1263 1283 LOW 1101 1109 1116 1124 1139 1154 1165 1180 1196 1212 1229 1246

It is recommended that the medium growth scenario is used in preparing National Park’s peak population. OHAKUNE 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 1250 1273 1297 1320 1346 1373 1395 1422 1449 1475 1502 1530 MEDIUM 1238 1250 1263 1275 1295 1315 1330 1351 1372 1394 1416 1439 LOW 1235 1244 1252 1261 1277 1294 1307 1324 1342 1360 1378 1397

It is recommended that the high growth scenario is used in preparing Ohakune’s peak population.

OTANGIWAI - OHURA 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 1083 1104 1124 1144 1167 1190 1209 1233 1256 1279 1302 1326 MEDIUM 1074 1084 1095 1105 1122 1140 1153 1171 1190 1209 1228 1248 LOW 1071 1078 1086 1093 1108 1122 1133 1148 1163 1179 1195 1211

It is recommended that the low growth scenario is used in preparing Otangiwai-Ohura’s peak population.

RAETIHI 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 1102 1122 1143 1164 1187 1210 1230 1254 1277 1301 1324 1349 MEDIUM 1092 1103 1113 1124 1141 1159 1173 1191 1210 1229 1249 1269 LOW 1089 1096 1104 1112 1126 1141 1152 1167 1183 1199 1215 1232

It is recommended that the low growth scenario is used in preparing Raetihi’s peak population.

TANGIWAI 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 1351 1377 1402 1427 1456 1484 1509 1538 1566 1595 1624 1654 MEDIUM 1339 1352 1366 1379 1400 1422 1439 1461 1484 1508 1532 1556 LOW 1335 1345 1354 1364 1382 1400 1413 1432 1451 1471 1491 1511

It is recommended that the low growth scenario is used in preparing Tangiwai’s peak population.

TAUMARUNUI (CENTRAL, EAST AND NORTH - THREE SA2'S COMBINED 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 4941 5034 5127 5220 5322 5427 5516 5624 5727 5832 5939 6048

113 MEDIUM 4896 4945 4993 5042 5119 5198 5260 5341 5426 5513 5600 5690 LOW 4883 4917 4952 4987 5051 5117 5167 5234 5305 5378 5451 5525

It is suggested that the medium growth scenario is used in preparing Taumarunui’s peak population.

WAIOURU 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 821 837 852 868 885 902 917 935 952 970 987 1006 MEDIUM 814 822 830 838 851 864 875 888 902 917 931 946 LOW 812 818 823 829 840 851 859 870 882 894 906 919

It is suggested that the low growth scenario is used in preparing Waiouru’s peak population.

NGAPUKE 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGH 1333 1358 1383 1408 1436 1464 1488 1517 1545 1573 1602 1631 MEDIUM 1321 1334 1347 1360 1381 1402 1419 1441 1464 1487 1511 1535 LOW 1317 1326 1336 1345 1363 1380 1394 1412 1431 1451 1470 1490 It is suggested that the low growth scenario is used in preparing Ngapuke’s peak population.

OVERVIEW OF SUGGESTED GROWTH LEVELS FOR URP: SA2 RECOMMENDED GROWTH LEVEL National Park Medium Ohakune High Otangiwai-Ohura Low Raetihi Low Tangiwai Low Taumarunui (Central, East + North) Medium Waiouru Low Ngapuke Low Recommended Growth Levels per SA2

COMPONENT 2: ESTIMATED PROJECTED POPULATION – HOLIDAY HOMES The second component of Peak Population that is explored is that of Holiday Home Population. In order to monitor and record the holiday home environment within the District and to attempt to quantify the use of holiday homes, Council has undertaken five Non-Resident Ratepayer Surveys (NRR) since 2008.

Whilst this survey is an important source for understanding the holiday home environment, due to its nature and the low return rate, it should be noted that the results come with a very high level of uncertainty.

LOCATION AND NUMBER OF HOLIDAY HOMES The table below reports the estimated number of holiday homes owned by non-resident rate payers in 2010, 2013, 2016 and 2019. It does not include rental homes owned by non-resident rate payers nor does it include holiday homes owned by residents living within the district. As stated above, this information is drawn directly from the NRR survey, ‘not known’ locations come from incomplete surveys that did not fill out their location.

AREA 2010 2013 2016 2019 Ohakune 922 838 1162 1051 Taumarunui 212 235 236 249 National Park 193 255 194 217 Raetihi 102 130 148 145

114 Rangataua 76 101 162 140 Raurimu 83 - 51 77 Owhango 38 64 - 50 Horopito 23 26 37 36 Kakahi 26 17 28 32 Ohura 34 23 19 14 Waiouru 23 14 14 14 Kaitieke 4 3 - 14 Waimiha 8 6 19 9 Pokaka 8 6 - 9 Not Known 38 9 46 5 Tokorima 4 - - - Piriaka 4 3 5 - Erua 4 3 5 9 TOTAL 1802 1733 2126 2071 Return Rate 21.30% 27.90% 20.40% 22% Location and Estimated Number of Holiday Homes by year, past and present.

PLEASE NOTE THE VARIATION IN Y-AXIS INCREMENTS WHEN COMPARING THE FOLLOWING GRAPHS.

Location and Number of Holiday Homes 1400 1200 1000 800 600 400 200 0 Ohakune Taumarunui National Park Raetihi Rangataua

2010 2013 2016 2019

Location and Number of Holiday Homes 90 80 70 60 50 40 30 20 10 0 Raurimu Owhango Horopito Kakahi Ohura

2010 2013 2016 2019

115 Location and Number of Holiday Homes 50

40

30

20

10

0 Waiouru Kaitieke Waimiha Pokaka Not Known Tokorima Piriaka Erua

2010 2013 2016 2019

ESTIMATED DISTRIBUTION OF HOLIDAY HOMES (%) Based on the information above, the table below shows the estimated distribution of holiday homes and the 9 year average which is used later in this document for projection purposes.

2010 2013 2016 2019 9 Year Average Ohakune 51.165% 48.355% 54.657% 50.748% 51.12% Taumarunui 11.765% 13.560% 11.101% 12.023% 12.00% National Park 10.710% 14.714% 9.125% 10.478% 11.14% Raetihi 5.660% 7.501% 6.961% 7.001% 6.67% Rangataua 4.218% 5.828% 7.620% 6.760% 5.99% Raurimu 4.606% 2.399% 3.718% 3.46% Owhango 2.109% 3.693% 2.414% 2.63% Horopito 1.276% 1.500% 1.740% 1.738% 1.45% Kakahi 1.443% 0.981% 1.317% 1.545% 1.21% Ohura 1.887% 1.327% 0.894% 0.676% 1.08% Waiouru 1.276% 0.808% 0.659% 0.676% 0.74% Kaitieke 0.222% 0.173% 0.676% 0.24% Waimiha 0.444% 0.346% 0.894% 0.435% 0.42% Pokaka 0.444% 0.346% 0.435% 0.29% Not Known 2.109% 0.519% 2.164% 0.241% 1.15% Tokorima 0.222% 0.11% Piriaka 0.222% 0.173% 0.235% 0.10% Erua 0.222% 0.173% 0.235% 0.435% 0.16% Estimated Distribution of Holiday Homes

HOLIDAY HOME OCCUPANCY The NRR survey also gathers information to ascertain the average number of people that stay in holiday homes and the average number of holiday homes in use each day. As aforementioned, the quality of this data is low and we therefore believe that this estimate is on the low side

2010 2013 2016 2019 Estimated average # of people per home per 4.4 4.4 4.7 4.6 stay Average # of Holiday Homes in use each day (N.A) (N.A) 28 27 Estimated total number of Holiday Homes 1802 1733 2126 2071 Holiday Home Occupancy

116

The above estimated figures suggest that during 2016, there was an average of 131 (4.7 x 28) people utilising holiday homes in the district each day and that during 2019, there was an average of 124 (4.6 x 27) people in the district utilising holiday homes each day.

Using the estimated number of holiday homes and the estimated number of people per home, the District’s absolute peak holiday home population for 2016 was 9,992 people per day, and for 2019 was 9,526 people per day.

Acknowledging the percentage of holiday homes in each urban area, we can estimate that the absolute peak holiday home population possible in each urban area could be distributed as the table below suggests.

URBAN AREA 2013 2016 2019 Ohakune 3687.1 5461.3 4834.3 Taumarunui 1034.0 1109.2 1145.3 National Park 1122.0 911.8 998.1 Raetihi 572.0 695.6 667.0 Rangataua 444.4 761.4 644.0 Raurimu 0.0 239.7 354.2 Owhango 281.6 0.0 230.0 Horopito 114.4 173.9 165.6 Kakahi 74.8 131.6 147.2 Ohura 101.2 89.3 64.4 Waiouru 61.6 65.8 64.4 Kaitieke 13.2 0.0 64.4 Waimiha 26.4 89.3 41.4 Pokaka 26.4 0.0 41.4 Not Known 39.6 216.2 23.0 Tokorima 0.0 0.0 0.0 Piriaka 13.2 23.5 0.0 Erua 13.2 23.5 41.4 TOTAL 7625 9992 9526

Peak Holiday Home Population per Urban Area

HOLIDAY HOME – PROJECTED GROWTH BY AREA As noted earlier, the NRR survey is an important source of information however due to the variance in responses and low level return rate, it comes with a very high level of uncertainty. Nevertheless, given the importance of holiday home visitor numbers in establishing an estimated peak population, it is necessary to use this information in order to estimate future holiday home visitor numbers as well as the projected absolute peak population.

Based on the survey responses between 2010 and 2019 the total number of holiday homes increased by 269, or approximately 27 homes per year, from 1,802 (in 2010) to 2,071 (in 2019). Over this same time period, the average number of people staying per home ranged from 4.4 – 4.7.

The following projections have been calculated assuming growth of 27 holiday homes per year at an estimated occupancy rate of 4.6 persons.

117

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Projected number 2125 2152 2179 2206 2233 2260 2287 2314 2341 2368 2395 of holiday homes Projected peak 9775 9899 10025 10148 10272 10396 10520 10644 10769 10893 11017 population

Projected Holiday Home Number and Population

The 9 year average (percentage) of the distribution of holiday homes has been used to determine future holiday home projections because there were no obvious trends emerging from this set of data (due to its dubious nature). The 9 year average can be found on page 28 table 19.

PROJECTED HOLIDAY HOME POPULATION URBAN 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 AREA Ohakune 4,997 5,060 5,124 5,188 5,251 5,314 5,378 5,441 5,505 5,569 5,632 Taumarunui 1,173 1,188 1,203 1,218 1,233 1,248 1,262 1,277 1,292 1,307 1,322 National Park 1,089 1,103 1,117 1,130 1,144 1,158 1,172 1,186 1,200 1,213 1,227 Raetihi 652 660 669 677 685 693 702 710 718 727 735 Rangataua 586 593 600 608 615 623 630 638 645 652 660 Raurimu 338 343 347 351 355 360 364 368 373 377 381 Owhango 257 260 264 267 270 273 277 280 283 286 290 Horopito 142 144 145 147 149 151 153 154 156 158 160 Kakahi 118 120 121 123 124 126 127 129 130 132 133 Ohura 106 107 108 110 111 112 114 115 116 118 119 Waiouru 72 73 74 75 76 77 78 79 80 81 82 Kaitieke 23 24 24 24 25 25 25 26 26 26 26 Waimiha 41 42 42 43 43 44 44 45 45 46 46 Pokaka 28 29 29 29 30 30 31 31 31 32 32 Not Known 112 114 115 117 118 120 121 122 124 125 127 Tokorima 11 11 11 11 11 11 12 12 12 12 12 Piriaka 10 10 10 10 10 10 11 11 11 11 11 Erua 16 16 16 16 16 17 17 17 17 17 18 TOTAL 9,771 9,895 10,019 10,144 10,268 10,392 10,516 10,640 10,765 10,889 11,013 Projected Holiday Home Population

In order to inform peak population (pages 35 - 43) each of these townships have been attributed to their respective SA2.

COMPONENT 3: ESTIMATED PROJECTED POPULATION - COMMERCIAL ACCOMMODATION The third component of Peak Population that is explored is that of the Commercial Accommodation Monitor Survey (CAM Stats) which provides information about short-term commercial accommodation activity in hotels, motels, backpackers and holiday parks (excluding Bed + Breakfast type arrangements – see Holiday Homes) at territorial authority level14. Unfortunately, the survey was discontinued in August 2019. There is however, still adequate information with which to model projections for the time being. The data for the months of September 2019 through to December 2019 has been conservatively modelled from the emerging trends of the same months of the previous five years.

It is important to note that the CAM Stat data is reliant on commercial accommodation operators willingly and honestly providing their information. Not all commercial accommodation providers in the District

14 https://www.stats.govt.nz/information-releases/accommodation-survey-august-2019

118 provided data to CAM Stats and not all operators provided data consistently. Anecdotal feedback from Council’s Economic Development Manager is that approximately a dozen commercial accommodation providers never provided information to CAM Stats.

Over the past 10 years between 47 and 54 commercial accommodation providers have submitted data to CAM Stats. On average, there was a 0.294% increase in occupancy per year, a 2.46% increase in guest nights and a 2.8% increase in guest arrivals.

Average # Average Average Total Stay Average Average # of accom. Daily Occupancy unit nights length of Guests per units Capacity Rate (%) (occupancy) stay (days) stay-unit (stay units) night 2010 50 2,503 23.5 214,754 1.76 1.77 2011 51 2,402 25.81 226,393 1.69 1.71 2012 51 2,476 23.07 208,789 1.62 1.79 2013 52 2,442 24.37 217,558 1.62 1.81 2014 52 2,426 26.63 236,036 1.67 1.79 2015 51 2,419 28.41 251,663 1.69 1.72 2016 51 2,305 30.27 256,223 1.70 1.72 2017 52 2,227 33.06 269,311 1.73 1.78 2018 52 2,195 35.2 282,007 1.73 1.75 2019*15 51 2,219 32.57 264,485 1.73 1.80 Commercial Accommodation Averages

Total Stay-unit nights (occupancy) 300000

275000

250000

225000 Number of occupants occupants of Number 200000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Year

15 2019 statistics are skewed and most likely very conservative. The last four months of the calendar year have been modelled from the same months of the previous 5 years trends due to the survey being discontinued in August 2019.

119

Percentage change in occupancy 2010 214,754 5.42% 2011 226,393 -7.78% 2012 208,789 4.20%

2013 217,558 8.49% 2014 236,036 6.62% 2015 251,663 1.81% 2016 256,223 5.11% 2017 269,311 4.71%

2018 282,007 -6.21%

264,485 2019* Average increase per year 2.49%

CAM Percentage Change in Occupancy

Guest Nights VS Guest Arrivals 525000 500000 475000 450000 425000 400000 375000 350000 325000 300000 275000 250000 225000 200000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*

Guest nights Guest arrivals

Percentage Change in Guest nights 2010 386,869 1.49% 2011 392,636 -3.66% 2012 378,280 5.51% 2013 399,123 7.01% 2014 427,107 2.18% 2015 436,404 1.87% 2016 444,570 8.30% 2017 481,460 3.18% 2018 496,772 -3.74%

2019* 478,181 Average increase per year 2.46%

CAM Percentage Change in Guest Nights

Percentage Change in Guest arrivals 2010 216,202 6.54% 2011 230,345 1.43% 2012 233,649 3.56% 2013 241,966 5.52% 2014 255,314 0.70%

120 2015 257,092 2.13% 2016 262,574 6.05% 2017 278,464 3.20% 2018 287,380 -3.93%

2019* 276,082 Average increase per year 2.8% CAM Percentage Change in Guest Arrivals

COMMERCIAL ACCOMODATION – PROJECTED GROWTH BY SA2 The following table assumes that there are 60 commercial accommodation providers operating within the District distributed as follows:

NUMBER OF COMMERCIAL ACCCOMIDATION PROVIDERS National Ngapuke Ohakune Otangiwai – Raetihi Tangiwai Taumarunui Waiouru Park Ohura 16 0 30 1 2 2 8 1 Number of Commercial Accommodation Providers

Another assumption made is that a commercial accommodation provider will be established in the Ngapuke SA2 over the next 10 years. If this is not the case, this allowance will most likely be absorbed by another SA2.

Projected commercial accommodation visitors have been prepared at low, medium and high growth levels. It is recommended that when preparing the peak population, the same growth levels are used as those for the URP projections.

NATIONAL 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 PARK High 873 873 873 873 873 912 912 912 912 953 953 953 Medium 770 770 770 770 770 793 793 793 793 817 817 817 Low 667 667 667 667 667 670 670 670 670 674 674 674

NGAPUKE 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 0 0 0 0 0 8 8 8 8 8 8 8 Medium 0 0 0 0 0 4 4 4 4 4 4 4 Low 0 0 0 0 0 0 0 0 0 0 0 0

OHAKUNE 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1637 1637 1637 1637 1637 1719 1719 1719 1719 1805 1805 1805 Medium 1444 1444 1444 1444 1444 1487 1487 1487 1487 1532 1532 1532 Low 1252 1252 1252 1252 1252 1265 1265 1265 1265 1277 1277 1277

OTANGIWAI - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 OHURA High 55 55 55 55 55 55 55 55 55 55 55 55 Medium 48 48 48 48 48 48 48 48 48 48 48 48 Low 42 42 42 42 42 42 42 42 42 42 42 42

RAETIHI 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 109 109 109 109 109 109 109 109 109 109 109 109 Medium 96 96 96 96 96 96 96 96 96 96 96 96 Low 83 83 83 83 83 83 83 83 83 83 83 83

121 TANGIWAI 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 109 109 109 109 109 109 109 109 109 109 109 109 Medium 96 96 96 96 96 96 96 96 96 96 96 96 Low 83 83 83 83 83 83 83 83 83 83 83 83

TAUMARUNUI 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 436 436 436 436 436 449 449 449 449 463 463 463 Medium 385 385 385 385 385 385 385 385 385 385 385 385 Low 334 334 334 334 334 327 327 327 327 321 321 321

WAIOURU 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 55 55 55 55 55 55 55 55 55 55 55 55 Medium 48 48 48 48 48 48 48 47 47 47 47 47 Low 42 42 42 42 42 42 42 41 41 41 41 41

COMPONENT 4: ESTIMATED PROJECTED POPULATION - DAY VISITORS The fourth and final component of Peak Population is Day Visitors. There is no solid data that can currently be relied upon to identify day visitors to the District and as such the assumption has been made that day visitors to the District will reflect commercial accommodation visitors. The same growth level is also to be used when preparing the peak population.

PEAK POPULATION Peak population is a vital tool with which to plan for the absolute peak usage of services and infrastructure that Council could experience on any given day. Peak population comprises for the four components explored through pages 23 - 45; usually resident population, holiday home population, commercial accommodation population and day visitors.

122 NATIONAL PARK URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1114 1135 1156 1177 1200 1224 1245 1269 1293 1316 1341 1365 Medium 1104 1115 1126 1137 1154 1172 1187 1205 1224 1244 1264 1284 Low 1101 1109 1116 1124 1139 1154 1169 1184 1200 1216 1233 1249

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 1686 1708 1729 1751 1773 1795 1816 1838 1860 1881 1903 1925

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 873 873 873 873 873 912 912 912 912 953 953 953 Medium 770 770 770 770 770 793 793 793 793 817 817 817 Low 667 667 667 667 667 670 670 670 670 674 674 674

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 873 873 873 873 873 912 912 912 912 953 953 953 Medium 770 770 770 770 770 793 793 793 793 817 817 817 Low 667 667 667 667 667 670 670 670 670 674 674 674

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 4546 4589 4631 4674 4719 4843 4886 4932 4977 5104 5150 5196 Medium 4330 4363 4395 4428 4467 4553 4589 4629 4670 4759 4800 4842 Low 4121 4150 4180 4209 4246 4289 4325 4362 4400 4445 4483 4521

Peak Population: National Park

123 NGAPUKE URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1333 1358 1383 1408 1436 1464 1489 1519 1546 1575 1604 1633 Medium 1321 1334 1347 1360 1381 1402 1420 1442 1465 1488 1512 1536 Low 1317 1326 1336 1345 1363 1380 1398 1416 1436 1455 1475 1495

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 126 128 130 131 133 135 136 138 139 141 143 144

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 0 0 0 0 0 8 8 8 8 8 8 8 Medium 0 0 0 0 0 4 4 4 4 4 4 4 Low 0 0 0 0 0 0 0 0 0 0 0 0

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 126 128 130 131 133 135 136 138 139 141 143 144 Medium 95 97 100 103 106 109 112 115 118 122 125 128 Low 71 73 75 77 79 82 84 86 89 91 94 96

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1586 1614 1642 1671 1702 1741 1770 1802 1833 1865 1897 1930 Medium 1542 1559 1577 1594 1620 1650 1672 1699 1727 1755 1784 1813 Low 1515 1528 1541 1554 1575 1597 1618 1640 1664 1687 1711 1736

Peak Population: Ngapuke

124 OHAKUNE URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1250 1273 1297 1320 1346 1373 1396 1424 1450 1477 1504 1531 Medium 1238 1250 1263 1275 1295 1315 1331 1352 1373 1395 1417 1440 Low 1235 1244 1252 1261 1277 1294 1311 1328 1346 1364 1383 1401

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 4934 4997 5060 5124 5188 5251 5314 5378 5441 5505 5569 5632

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1637 1637 1637 1637 1637 1719 1719 1719 1719 1805 1805 1805 Medium 1444 1444 1444 1444 1444 1487 1487 1487 1487 1532 1532 1532 Low 1252 1252 1252 1252 1252 1265 1265 1265 1265 1277 1277 1277

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1637 1637 1637 1637 1637 1719 1719 1719 1719 1805 1805 1805 Medium 1444 1444 1444 1444 1444 1487 1487 1487 1487 1532 1532 1532 Low 1252 1252 1252 1252 1252 1265 1265 1265 1265 1277 1277 1277

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 9457 9544 9631 9718 9808 10061 10149 10239 10329 10591 10682 10773 Medium 9060 9135 9211 9287 9370 9540 9620 9704 9789 9964 10050 10136 Low 8672 8745 8817 8889 8969 9074 9154 9235 9316 9424 9506 9588

Peak Population: Ohakune

125 OTANGIWAI - OHURA URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1083 1104 1124 1144 1167 1190 1211 1234 1257 1280 1303 1327 Medium 1074 1084 1095 1105 1122 1140 1154 1172 1191 1210 1229 1249 Low 1071 1078 1086 1093 1108 1122 1136 1151 1167 1183 1199 1215

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 155 157 159 161 163 165 167 169 171 173 175 177

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 55 55 55 55 55 55 55 55 55 55 55 55 Medium 48 48 48 48 48 48 48 48 48 48 48 48 Low 42 42 42 42 42 42 42 42 42 42 42 42

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 55 55 55 55 55 55 56 56 56 56 56 57 Medium 48 48 48 48 48 48 48 48 48 48 48 48 Low 42 42 42 42 42 42 41 41 41 41 41 42

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1349 1371 1393 1416 1440 1465 1489 1515 1539 1564 1590 1616 Medium 1325 1338 1350 1363 1382 1401 1418 1437 1458 1479 1500 1522 Low 1310 1320 1329 1339 1355 1371 1387 1404 1422 1439 1458 1477

Peak Population: Otangiwai-Ohura

126 RAETIHI URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1102 1122 1143 1164 1187 1210 1231 1255 1278 1302 1326 1350 Medium 1092 1103 1113 1124 1141 1159 1174 1192 1211 1230 1250 1270 Low 1089 1096 1104 1112 1126 1141 1156 1171 1187 1203 1219 1236

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 644 652 660 669 677 685 693 702 710 718 727 735

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 109 109 109 109 109 109 109 109 109 109 109 109 Medium 96 96 96 96 96 96 96 96 96 96 96 96 Low 83 83 83 83 83 83 83 83 83 83 83 83

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 109 109 109 109 109 111 111 111 111 111 111 113 Medium 83 83 83 83 83 83 83 83 83 83 83 83 Low 63 63 63 63 63 63 63 63 63 63 63 63

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1963 1992 2021 2050 2082 2115 2145 2177 2209 2240 2272 2307 Medium 1915 1934 1953 1972 1997 2023 2046 2073 2100 2127 2155 2184 Low 1878 1894 1910 1926 1949 1972 1995 2018 2043 2067 2092 2117

Peak Population: Raetihi

127 TANGIWAI URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1351 1377 1402 1427 1456 1484 1510 1540 1568 1597 1626 1656 Medium 1339 1352 1366 1379 1400 1422 1440 1462 1485 1509 1533 1557 Low 1335 1345 1354 1364 1382 1400 1418 1436 1456 1475 1495 1516

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 761 771 781 791 801 810 820 830 840 850 859 869

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 109 109 109 109 109 109 109 109 109 109 109 109 Medium 96 96 96 96 96 96 96 96 96 96 96 96 Low 83 83 83 83 83 83 83 83 83 83 83 83

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 109 109 109 109 109 109 110 110 110 110 110 110 Medium 96 96 96 96 96 96 96 96 96 96 96 96 Low 83 83 83 83 83 83 83 83 83 83 83 82

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 2331 2366 2401 2436 2474 2513 2549 2588 2626 2665 2704 2744 Medium 2293 2316 2339 2362 2393 2424 2452 2484 2517 2551 2584 2619 Low 2263 2282 2301 2321 2348 2376 2403 2432 2461 2491 2520 2550

Peak Population: Tangiwai

128 TAUMARUNUI (CENTRAL, EAST AND NORTH - THREE SA2'S COMBINED) URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 4941 5034 5127 5220 5322 5427 5521 5630 5733 5838 5945 6054 Medium 4896 4945 4993 5042 5119 5198 5264 5346 5431 5517 5605 5694 Low 4883 4917 4952 4987 5051 5117 5183 5250 5322 5394 5468 5542

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 1158 1173 1188 1203 1218 1233 1248 1262 1277 1292 1307 1322

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 436 436 436 436 436 449 449 449 449 463 463 463 Medium 385 385 385 385 385 385 385 385 385 385 385 385 Low 334 334 334 334 334 327 327 327 327 321 321 321

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 436 436 436 436 436 449 449 449 449 463 463 463 Medium 385 385 385 385 385 385 385 385 385 385 385 385 Low 334 334 334 334 334 327 327 327 327 321 321 321

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 6971 7079 7187 7294 7412 7558 7667 7790 7909 8056 8177 8301 Medium 6825 6888 6951 7014 7107 7201 7282 7378 7478 7579 7682 7786 Low 6709 6758 6808 6857 6937 7004 7085 7167 7254 7328 7416 7506

Taumarunui, Central East and North

129 WAIOURU URP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 821 837 852 868 885 902 918 936 953 971 988 1007 Medium 814 822 830 838 851 864 875 889 903 917 932 947 Low 812 818 823 829 840 851 862 873 885 897 909 921

Holiday Homes 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Medium 71 72 73 74 75 76 77 78 79 80 81 82

CAM 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 55 55 55 55 55 55 55 55 55 55 55 55 Medium 48 48 48 48 48 48 48 47 47 47 47 47 Low 42 42 42 42 42 42 42 41 41 41 41 41

Day Visitors 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 55 55 55 55 55 55 55 55 55 55 55 55 Medium 48 48 48 48 48 48 48 47 47 47 47 47 Low 42 42 42 42 42 42 42 41 41 41 41 41

Total 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 High 1003 1019 1036 1052 1070 1088 1105 1124 1142 1160 1179 1198 Medium 969 978 987 996 1010 1024 1036 1048 1063 1078 1094 1110 Low 967 974 981 987 999 1011 1023 1032 1045 1058 1071 1084

Peak Population: Waiouru

130 As aforementioned, it is recommended that the following growth levels be used to indicate the absolute peak population:

SA2 RECOMMENDED GROWTH LEVEL National Park Medium Ohakune High Otangiwai-Ohura Low Raetihi Low Tangiwai Low Taumarunui (Central, East + North) Medium Waiouru Low Ngapuke Low

The following table depicts the total projected Peak Population when taking into consideration each SA2’s recommended growth level.

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 NATIONAL PARK Medium 4330 4363 4395 4428 4467 4553 4589 4629 4670 4759 4800 4842 NGAPUKE Low 1515 1528 1541 1554 1575 1597 1618 1640 1664 1687 1711 1736 OHAKUNE High 9457 9544 9631 9718 9808 10061 10149 10239 10329 10591 10682 10773 OTANGIWAI - OHURA Low 1310 1320 1329 1339 1355 1371 1387 1404 1422 1439 1458 1477 RAETIHI Low 1878 1894 1910 1926 1949 1972 1995 2018 2043 2067 2092 2117 TANGIWAI Low 2263 2282 2301 2321 2348 2376 2403 2432 2461 2491 2520 2550 TAUMARUNUI (CENTRAL, EAST AND NORTH - THREE SA2'S COMBINED) Medium 6825 6888 6951 7014 7107 7201 7282 7378 7478 7579 7682 7786 WAIOURU Low 967 974 981 987 999 1011 1023 1032 1045 1058 1071 1084 RUAPEHU DISTRICT Total Peak POP 28545 28792 29039 29287 29608 30142 30446 30773 31111 31672 32016 32364 Projected Peak Population by SA2 at Recommended Growth Levels

131 INFRASTRUCTURE Indicators of growth and expansion in the built environment include; 1. Resource Consents 2. Building Consents 3. Rateable Assessments

Forecasted Assumption(s): 1. The assumption has been made that low quality asset condition assessments will lead to poor infrastructure capital decision making. Level of Certainty: Highly Likely Potential Financial Consequence: Moderate

2. The assumption has been made that, excepting water infrastructure, all other assets will deliver the required level of service over their documented useful life as reflected in the Revenue and Financing Policy. Level of Certainty: Likely Potential Financial Consequence: Moderate

3. Revaluation of fixed assets is done annually for property. It includes an assessment of the useful (economic) life of the asset. This is in accordance with the Council’s accounting policies detailed under “Property, Plant and Equipment and Infrastructural Assets” which includes further detail of revaluation policies and the estimated useful life of various assets. The revaluations are based on the BERL inflation rates. The revaluation impact is broadly equivalent to the increase in the Local Government Cost Index. Level of Certainty: Likely Potential Financial Consequence: Moderate

4. Depreciation rates on planned asset acquisitions are based on an average percentage of their components and the estimated useful life of the various assets. Level of Certainty: Likely Potential Financial Consequence: Moderate

5. There is a risk that compromised access to and through SH4 could lead to economic impacts resulting from short term interruption and loss of economic opportunity. Level of Certainty: Unlikely Potential Financial Consequence: Low

6. The assumption has been made that the Capital work programme estimates and MBIE funding are not sufficient to complete all elements of proposed works and ratepayers will need to part fund this Level of Certainty: Likely Potential Financial Consequence: Significant

7. The assumption has been made that ongoing subdivisions in Ohakune will cause additional pressures on 3 waters infrastructure resulting in Council not being able to consent buildings. Level of Certainty: Likely Potential Financial Consequence: Significant

8. It has been assumed that all resource consents will be renewed but in many cases, with increasing environmental standards. The expected time to obtain resource consents is factored into project timelines and the increased standards. Level of Certainty: Likely Potential Financial Consequence: Significant

9. The assumption has been made that the number of rateable assessments will continue to experience small scale growth of approximately 0.16% Level of Certainty: Likely Potential Financial Consequence: Neutral

132 RESOURCE CONSENTS In the past six months, a number of subdivisions have been progressed from granted consents to completion of conditions and the final process to issue of title. The year 2019/20 saw 54 development contributions paid, while during the current financial year (2020/21 to date), there have been 62 lots paid, indicating that owners are experiencing positive responses from potential and actual purchasers of these new lots.

This surge in urban residential subdivision activity is only occurring in Ohakune but does include a number of lifestyle blocks being developed all over the District including an increasing number of two – three lot subdivisions.

Year Subdivision Land Use 2011/12 33 (1 refused) 69 2012/13 24 (2 refused) 33 2013/14 18 33 2014/15 13 34 2015/16 10 50 2016/17 21 55 2017/18 19 47 (2 returned) 2018/19 29 (4 returned) 41 (4 returned) 2019/20 29 (1 returned; 1 withdrawn) 41 (1 returned) 2020/21* as at 18/01/21 17* 11* 2010 – 2020 Resource Consents

Total Resource Consents 120

100

80

60

40

20

0 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

Subdivision Land Use Total

BUILDING CONSENTS At a District level, the number of building consents issued has continued to rise since the 2012/13 decline. 2020 saw the first overall decline in building consents issued since 2012; this could be attributed to COVID-19 induced behaviour. Interestingly, Taumarunui was the only ward that saw an increase, albeit slight, in building consents issued in 2020. RUAPEHU DISTRICT CONSENT TYPE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Additions + alterations 190 163 194 141 158 169 167 196 206 224 160 1968 Demolition 22 13 14 14 12 7 0 4 0 3 0 89 New building 108 96 118 74 84 78 91 120 149 141 100 1159 Re-sited 22 32 14 18 14 15 18 15 22 10 8 188 Total 342 304 340 247 268 269 276 335 377 378 268 3404

133 Ruapehu District: Building Consents

RUAPEHU DISTRICT 400

300

200

100

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Additions and alterations Demolition New building Resited Total

TAUMARUNUI CONSENT TYPE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Additions + alterations 76 76 78 50 64 61 67 77 77 57 72 755 Demolition 6 5 4 2 7 3 0 0 0 2 0 29 New building 34 41 31 24 21 17 22 28 33 30 19 300 Resited 4 5 3 4 3 4 3 4 8 2 2 42 Total 120 127 116 80 95 85 92 109 118 91 93 1126

Building Consents: Taumarunui

TAUMARUNUI

140 120 100

80 60 40 20 0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Additions and alterations Demolition New building Resited

Total

OHURA CONSENT TYPE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Additions + alterations 9 7 15 4 8 2 5 9 10 25 9 103 Demolition 2 0 1 1 0 0 0 0 0 0 0 4

134 New building 7 6 22 1 9 8 4 7 13 6 7 90 Re-sited 1 0 0 0 2 0 2 0 0 0 1 6 Total 19 13 38 6 19 10 11 16 23 31 17 203 Building Consents: Ohura

OHURA 40 35 30 25 20 15 10 5 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Additions and alterations Demolition New building Resited Total

NATIONAL PARK CONSENT TYPE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Additions + alterations 10 15 34 17 18 14 20 19 33 34 21 235 Demolition 1 0 2 3 1 0 0 1 0 1 0 9 New building 12 8 27 11 14 11 14 16 11 28 13 165 Re-sited 0 5 3 1 1 3 4 1 1 5 3 27 Total 23 28 66 32 34 28 38 37 45 68 37 436

Building Consents: National Park

NATIONAL PARK 80 70 60 50 40 30 20 10 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Additions and alterations Demolition New building Resited Total

135

WAIMARINO - WAIOURU CONSENT TYPE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Additions + alterations 95 65 67 70 68 92 75 91 86 108 58 875 Demolition 13 8 7 8 4 4 0 3 0 0 0 47 New building 55 41 38 38 40 42 51 69 92 77 61 604 Re-sited 17 22 8 13 8 8 9 10 13 3 2 113 Total 180 136 120 129 120 146 135 173 191 188 121 1639

Building Consents: Waimarino-Waiouru

WAIMARINO - WAIOURU 250

200

150

100

50

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Additions and alterations Demolition New building Resited Total

RATEABLE ASSESSMENTS The number of rateable units is also an important measure of growth however it must be acknowledged that the number of rateable units fluctuates year-on-year for reasons such as subdivisions, part-sales, or amalgamations. Over the past 10 years, the number of rateable assessments has increased on average 0.123% (or 11 units per year). Building on this trend, confidently assuming small scale growth, the assumed rate of growth has been set at 0.16% (or 15 units per year).

YEAR RATEABLE ASSESSMENTS 2010/11 8875 2011/12 8926 2012/23 8949 2013/14 8992 2014/15 8988 2015/16 8962 2016/17 8984 2017/18 8897 2018/19 8945 2019/20 YTD 8973 Table forty-five: Rateable Assessments

136

Rateable Assesssments 2010 - 2020 9020 9000 8980 8960 8940 8920 8900 8880 8860 8840

Raeteable Assessments 8820 8800 2010/11 2011/12 2012/23 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 YTD Financial Year

YEAR PROJECTED RATEABLE ASSESSMENTS 2020/21 8973 2021/22 8988 2022/23 9003 2023/24 9018 2024/25 9033 2025/26 9048 2026/27 9063 2027/28 9078 2028/29 9093 2029/30 9108 2030/31 9123 Projected Rateable Assessments

PROJECTED RATEABLE ASSESSMENTS 2021 - 2031 9150

9100

9050

9000

8950

8900 8850

137 ECONOMY There are many measures with which to gauge economic trends and outputs of households, communities and countries. A small insight into the Ruapehu economy is explored below featuring GDP, filled jobs and number of business units all of which are compared to the country as a whole.

Further information regarding Ruapehu’s economy in response to COVID-19 can be provided by staff (as prepared by Horizon’s Region Council) which references the following data sets; weekly retail, MSD benefits, overseas trade, job vacancies, jobs filled, job seekers, COVID income relief, property value, rent, and tourism.

The Herfindahl–Hirschman Index (HHI) measures the level of diversification of an economy, the higher the score the more concentrated a region or district’s economic activity is within a few industries, meaning the more vulnerable it is to adverse effects, such as those arising from climatic conditions or commodity price fluctuations. The Ruapehu HHI score has continually decreased since 2000 (52.6) to where it sits today at 45.7 indicating that the Ruapehu economy continues to diversify.

Forecasted Assumption(s):

1. The assumption has been made that International borders will remain closed, international tourist numbers remain nil into the near future. Local tourism operators rely solely on domestic tourism for the foreseeable future. Level of Certainty: Very Likely Potential Financial Consequence: Significant

2. The assumption has been made that pre-COVID, holiday home numbers were set to increase approx. 1.21% on average per year. Throughout COVID this is unlikely, however, this trend is expected to return with the recommencement of a fully functioning tourism economy. Level of Certainty: Likely Potential Financial Consequence: Moderate

GDP Gross Domestic Product (GDP) is a fundamental economic indicator that measures the value added from the production of goods and services. This section presents estimates of GDP for Ruapehu District for the year to March 2019 and previous years. GDP is measured in 2019 prices.16 In summary, over

Ruapehu District New Zealand Year GDP ($m) Change GDP ($m) Change 2000 598 178,338 2001 646 8.00% 183,317 2.80% 2002 640 -0.90% 189,786 3.50% 2003 665 4.00% 198,411 4.50% 2004 683 2.70% 207,456 4.60% 2005 656 -4.00% 215,334 3.80% 2006 655 -0.20% 223,533 3.30% 2007 659 0.80% 229,689 2.80% 2008 665 0.80% 235,822 2.70% 2009 646 -2.80% 231,880 -1.30% 2010 653 1.10% 232,535 -0.10% 2011 633 -3.10% 235,142 1.60% 2012 593 -6.40% 240,348 2.20% 2013 591 -0.30% 245,674 2.20% 2014 580 -1.90% 252,222 2.70% 2015 600 3.40% 261,380 3.60% 2016 622 3.70% 270,899 3.60% 2017 644 3.50% 280,277 3.50% 2018 659 2.40% 289,104 3.10%

16 Infometrics, https://ecoprofile.infometrics.co.nz/Ruapehu%20District/Gdp/Growth

138 Ruapehu District New Zealand 2019 668 1.40% 297,894 3.00% Table forty-six: GDP

Both domestic and international tourism has grown rapidly since 2000 and as a result, tourism’s contribution to the Ruapehu’s GDP has increased from $28 Million in 2000 to $102 million in 2020 making it one of the largest contributors to economic growth.

According to Infometrics the top 10 industries contributing to the Ruapehu’s GDP in 2020 were as follows:

Ruapehu GDP contribution by Industry Industry $million Share of total Central Gov Admin, Defence & Safety 91 12.50% Sheep, Beef Cattle & Grain Farming 78.8 10.80% Property Operators & Real Estate Services 44.3 6.10% Arts & Recreation Services 36.5 5.00% Accommodation & Food Services 33 4.50% Education & Training 29.9 4.10% Pulp & Paper Product Manufacturing 27.6 3.80% Heavy & Civil Engineering Construction 25.2 3.50% Health Care & Social Assistance 22 3.00% Electricity & Gas Supply 20.3 2.80%

GDP contribution by industry

FILLED JOBS Employment growth is an economic and social wellbeing indicator. As an economic indicator, positive employment growth shows that businesses in a region are confident in their activity and outlook to expand their workforce. The jobs created provide new opportunities for the population in Ruapehu District to earn an income, contribute to the local economy and increase the options available for how they live their lives.

139 Employment growth is important as it provides opportunities for the area’s population to increase their contact with others and the sense of self-worth or satisfaction it can give people.17

Ruapehu District New Zealand Year # of jobs Change Change

2000 6,507 2001 6,751 3.70% 2.30% 2002 6,871 1.80% 3.00% 2003 6,948 1.10% 2.60% 2004 7,085 2.00% 3.50% 2005 6,983 -1.40% 3.30% 2006 6,948 -0.50% 2.20% 2007 6,935 -0.20% 2.20% 2008 7,108 2.50% 2.00% 2009 6,916 -2.70% 0.60% 2010 6,879 -0.50% -2.40% 2011 6,669 -3.00% 0.40% 2012 6,065 -9.10% 1.00% 2013 5,943 -2.00% 1.00% 2014 5,857 -1.50% 1.90% 2015 5,989 2.30% 2.70% 2016 6,092 1.70% 2.40% 2017 6,187 1.60% 3.00% 2018 6,402 3.50% 2.80% 2019 6,438 0.60% 1.90%

Filled Jobs

17 Infometrics, https://ecoprofile.infometrics.co.nz/Ruapehu%20District/Employment/Growth

140 NUMBER OF BUSINESS UNITS The number of businesses in an area is an indicator of the health of the economy. For example, growth in the number of businesses in an area reflects increased entrepreneurial activity and economic activity as entrepreneurs are prepared to take risks and start new ventures.18

Ruapehu District New Zealand Year # of units Change Change 2000 1,872 2001 1,851 -1.10% -0.70% 2002 1,890 2.10% 1.10% 2003 1,899 0.50% 3.40% 2004 1,926 1.40% 8.30% 2005 1,989 3.30% 4.30% 2006 2,040 2.60% 3.60% 2007 2,037 -0.10% 2.20% 2008 2,028 -0.40% 2.10% 2009 1,968 -3.00% 0.70% 2010 1,896 -3.70% -1.40% 2011 1,866 -1.60% -0.10% 2012 1,827 -2.10% -0.20% 2013 1,782 -2.50% 0.60% 2014 1,788 0.30% 3.50% 2015 1,812 1.30% 2.40% 2016 1,803 -0.50% 1.80% 2017 1,809 0.30% 2.50% 2018 1,803 -0.30% 0.90% 2019 1,806 0.20% 1.80% 2019 1,806 0.20% 1.80%

Number of Business Units

18 Infometrics, https://ecoprofile.infometrics.co.nz/Ruapehu%20District/Businesses/Growth

141 NATURAL ENVIRONMENT

NATURAL DISASTERS Small natural disasters can be funded out of budgetary provisions. Council will require financial and other assistance from Central Government for large-scale events or disasters.

Forecasted Assumption(s):

1. Small natural disasters can be funded out of budgetary provisions. Council will require financial and other assistance from Central Government for large-scale events or disasters. Level of Certainty: Likely Potential Financial Consequence: Significant

2. Seasonal projections show winter rainfall increasing by 7-16% in Taumarunui by 2090. It is unclear what this increase looks like out to 2031. There is not enough data to plan for increase/decrease in rainfall in other areas. This in itself is a risk. Level of Certainty: Neutral Potential Financial Consequence: Moderate

3. Temperatures are likely to be 0.7˚C to 1.1˚C warmer by 2040 effecting evapotranspiration of soil and dams as well as snow days. Level of Certainty: Neutral Potential Financial Consequence: Moderate

4. A reduction in the number of snow days experienced annually is projected; potentially effecting local economies reliant on snow seeking visitors. Level of Certainty: Likely Potential Financial Consequence: Moderate - Significant

CLIMATE CHANGE Guidance for territorial authorities on preparing for climate change was reviewed in June 2018.

The ‘Climate Change Projections for New Zealand’ report 19 addresses expected changes in New Zealand’s climate (temperature and many other climate variables) out to 2120, and draws heavily on climate model simulations from the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report. Projections of climate change depend on future greenhouse gas emissions, which are uncertain. There are four main global emissions scenarios ranging from low to high greenhouse gas concentrations. This new set of four scenarios known as representative concentration pathways (RCPs), are used in this report. These pathways are identified by their approximate total radiative forcing at 2100 relative to 1750.

(a) RCP 2.6 = removal of some CO2 presently in our atmosphere (low emissions) (b) RCP 4.5 and RCP 6.0 = stabilisation of current CO2 levels (c) RCP 8.5 = high concentration of CO2 (high emissions)

19 Ministry for the Environment 2018. Climate Change Projections for New Zealand: Atmosphere Projections Based on Simulations from the IPCC Fifth Assessment, 2nd Edition. Wellington: Ministry for the Environment.

142 Projected changes in rainfall show a marked seasonality and variability across regions. For summer it is likely that there will be drier conditions in the central North Island. (see MfE CCP) The temperature projections generally increase with time and with the strength of the radiative forcing.

Taumarunui was (one of 5 towns) specifically singled out in this report as being very likely to have increased precipitation under the highest radiative forcing (RCP 8.5) during winter by the end of the century. (see MfE CCP)

Climate change projections for the Manawatu-Whanganui region were reviewed by the Ministry for the Environment in May 201820. The following changes are projected for the Manawatu-Wanganui region.21

TEMPERATURE Compared to 1995, temperatures are likely to be 0.7˚C to 1.1˚C warmer by 2040 and 0.7˚C to 3.1˚C warmer by 2090.

By the end of the century, the Region is projected to have from 7 to 47 extra days per year where maximum temperatures exceed 25˚C. The number of frosts could decrease by around 6 to 17 per year by 2090.

RAINFALL The largest changes will be for particular seasons rather than annually.

Seasonal projections show winter rainfall increasing by 6 to 10 per cent in Whanganui and 7 to 16 per cent in Taumarunui by 2090.

According to the most recent projections, the Manawatu-Whanganui region is not expected to experience a significant change in the frequency of extreme rainy days as a result of climate change.

SNOWFALL A reduction in the number of snow days experienced annually is projected throughout New Zealand, including the Central Plateau.

The duration of snow cover is also likely to decrease, particularly at lower elevations. Less winter snowfall and an earlier spring melt may cause marked changes in the annual cycle of river flow in the regions. Places that currently receive snow are likely to see increasing rainfall as snowlines rise to higher elevations due to rising temperatures.

It is possible snow amount could increase with rising temperatures in special circumstances; a warmer atmosphere can hold more moisture, and on a day where the temperatures are higher but still below freezing, there is the potential for increased heavy snowfalls. No analysis of snow extremes has been carried out at this point, however. Page 120 CC projections.

WIND The frequency of extremely windy days in the Manawatu-Whanganui region is not likely to change significantly by 2090. There may be an increase in westerly wind flow during winter and north-easterly wind flow during summer.

20 https://www.mfe.govt.nz/climate-change/likely-impacts-of-climate-change/how-could-climate-change-affect-my- region/manawatu 21 NOTE: Overview of regional projections shown as a range of values from a low emissions to a high emissions future. The projected changes are calculated for 2031–2050 (referred to as 2040) and 2081–2100 (2090) compared to the climate of 1986– 2005 (1995).

143 STORMS Future changes in the frequency of storms are likely to be small compared to natural inter-annual variability. Some increase in storm intensity, local wind extremes and thunderstorms is likely to occur.

IMPACTS BY SEASON BY 2090, THE REGION COULD EXPECT22: Spring 0.6°C to 2.7°C temperature rise 1 per cent less to 3 per cent more rainfall in Whanganui No change to 5 per cent more rainfall in Taumarunui Summer 0.7°C to 3.3°C temperature rise No change to 3 per cent more rainfall in Whanganui 2 per cent more rainfall in Taumarunui across the range of scenarios Autumn 0.7°C to 3.2°C temperature rise 5 per cent less to 2 per cent more rainfall in Whanganui and Taumarunui Winter 0.7°C to 3.2°C temperature rise 6 to 11 per cent more rainfall in Whanganui 7 to 16 per cent more rainfall in Taumarunui Table forty-nine: Climate Change Possible Impacts by Season

Note: Likelihood estimates IPCC terminology (see Introduction chapter or Technical Summary) for indicating the assessed likelihood of an outcome or result: Virtually certain: More than 99 per cent probability of occurrence Extremely likely: More than 95 per cent Probability very likely: More than 90 per cent Probability likely: More than 66 per cent probability More likely than not: More than 50 per cent probability Very unlikely: Less than 10 per cent probability Extremely unlikely: Less than 5 per cent probability.

22 Projected changes are relative to 1995 levels. The values provided capture the range across all scenarios. They are based on scenario estimates and should not be taken as definitive

144 FINANCIAL ASSUMPTION Refer to Part 3 of the Long term Plan, Significant Finical Assumptions, for further information regarding significant financial assumptions.

6. FINANCIAL

Rates Receivables (Debtors) It has been assumed that rates receivable as a percentage of rates will remain at Neutral Moderate current levels. There is a risk that rates receivables are significantly higher than that forecast due to a number of reasons, such as the effect of COVID 19 and economic issues. This would impact on cash flow requirements, increasing borrowing for operational costs. External Funding For Roads The forecast financial statements are based on the assumption that Council will be able Likely Significant to claim 74% of all maintenance and renewal costs for district roads in line with currently known NZTA work categories and classifications. Forecast co-investment from Waka Kotahi NZTA may be reduced due to impact from COVID-19. Council's financial assistance rate will increase to 75% in 2021/22 for local roads and 100% for Special purpose roads, with local roads reducing to 74% thereafter. Should the outcome result in less roading expenditure items being covered by the subsidy, the work programme for roading could be impacted. Any decrease in funding would require modification to planned projects and work programmes and may result in delays to both. Where it is not possible to decrease funding, there is the potential to impact on borrowing and rates.

Vested Assets The assumption has been made that no Vested Assets have been budgeted over the Neutral Low next ten years

Government subsidies While it is expected that Council will receive some Government funding for Land Low Moderate Transport, Housing, Cycle Trails and Three Waters and possibly other capital projects over the next ten years, the lack of certainty around this means that (and the assumption has been made) no subsidies have been factored into the budgets

145 Inflation The preparation of the budget has included inflation assumptions based on BERL Likely Moderate forecasting for the Local Government Sector. There is a high level of uncertainty associated with these inflation assumptions. If the impact of inflation on Council's budgets turns out to be higher than forecast and Council does not wish to generate additional revenue by increasing rates, then either additional operational efficiencies or reduction in service levels or planned capital expenditure would need to be considered. Should the impact of inflation be lower than forecast, there will be a favourable impact on Council's operating and capital expenditure budgets.

CAPEX Feasibility - Three Waters There is a strong chance that additional funding support from Central Government will Likely Significant be available to fast track drinking water reform changes. However, this LTP cannot include this possibility with key assumptions due to timing of any such announcements. As affordability has been removed from Local Government as a defence, RDC has forecast considerable debt impacts to Council as full compliance is an absolute non- negotiable now. The assumption has been made that practical delivery against the very ambitious LTP works forecast will face the challenges of supply chain constraints, and active monitoring will be required to minimise the risk of non-compliance by due dates. CAPEX Feasibility - Other Works With regards to Land Transport, there is a well-established supply chain, and committed Likely Moderate funding. There is potential that some bridge work not covered by NZTA will require RDC to fund which it would do through debt. These are one off items in what is otherwise a very stable work program. A number of Township Revitilization outcomes that are to be debt funded to account for inter-generational equity. These would go ahead in consultation with community regardless of external funding, but Council is very open to using proposed budgets as 'seed funding' with other partners to deliver further value than forecast. However, 3rd party investment cannot be assumed in this LTP, and as such counts as 100% RDC investment. Practical delivery will have strong political and community support, and supply chain issues are somewhat lessened in this activity due to lower competition for resources from out of district or competing priorities. The assumption has been made that these the capital works costs will not vary significantly from those budgeted

146 Interest rates The interest rates used are based on an estimate of what will occur in the future Likely Moderate - combined with known rates that are currently fixed under current borrowings with the Significant LGFA which Council joined in 2018. The assumption has been made that all borrowings will be renewed under similar terms and conditions except that interest rates applied to replacement and new borrowings annually will range from 1.7% to 3.4% in year ten of the LTP 2021-31. There is a high degree of uncertainty around borrowing costs due to the fluctuations of interest rates. Interest costs and debt repayment have been estimated in accordance with the Treasury Investment and Liability Management Policy.

147 REFERENCE

STATISTICS NZ: https://www.stats.govt.nz/news/update-on-release-of-2018-census-data http://infoshare.stats.govt.nz/ViewTable.aspx?pxID=11a49800-c875-49a8-844d-18e0ae71d282 https://www.stats.govt.nz/tools/2018-census-place-summaries/ruapehu-district#ethnicity-culture-and- identity https://www.stats.govt.nz/tools/2018-census-place-summaries/ruapehu-district#ethnicity-culture-and- identity https://www.stats.govt.nz/information-releases/accommodation-survey-august-2019 Commercial Accommodation Monitor

LEGISLATION.GOVT: http://www.legislation.govt.nz/bill/government/2019/0202/latest/LMS294345.html

NZ PARLIAMENT: https://www.parliament.nz/en/pb/sc/make-a- submission/document/52SCTI_SCF_BILL_93461/infrastructure-funding-and-financing-bill https://www.parliament.nz/en/pb/hansard-debates/rhr/combined/HansDeb_20191217_20191217_48

PROFILE ID https://profile.idnz.co.nz/ruapehu/service-age-groups?BMID=30&Sex=2 https://profile.idnz.co.nz/ruapehu/ethnic-group?BMID=30&Sex=2

MINISTRY FOR THE ENVIRONMENT https://www.mfe.govt.nz/sites/default/files/media/Climate%20Change/Climate-change-projections- 2nd-edition-final.pdf https://www.mfe.govt.nz/climate-change/likely-impacts-of-climate-change/how-could-climate-change- affect-my-region/manawatu

INFOMETRICS: https://ecoprofile.infometrics.co.nz/Ruapehu%20District/Businesses/Growth https://ecoprofile.infometrics.co.nz/Ruapehu%20District/Gdp/Growth https://ecoprofile.infometrics.co.nz/Ruapehu%20District/Employment/Growth

RUAPEHU DISTRICT COUNCIL: NRR Survey QUBE: Building Consents; Rating database;

OTHER: Ministry of Education Horizon’s Regional Council

148 INFRUSTRUCTURE STRATEGY

INTRODUCTION

Ruapehu District Council (Council) is responsible for the provision of core infrastructure that is essential for the health, safety and economic wellbeing of our District. The core infrastructure that we provide our community to function includes our water supply, wastewater, stormwater, and land transport activities (roading and footpaths). These activities support economic activity, protect private property and the environment, and ensure public health.

Our 2021 Infrastructure Strategy (strategy) provides us and our communities, with our strategic direction for the provision of core infrastructure over the next 30 years. The strategy outlines the investment programmes to ensure we are meeting our legislative obligations as well as maintaining service levels to our communities. We also need to consider how the national, regional and local economies are changing with the impact of the global pandemic.

The purpose of an Infrastructure Strategy is to identify significant infrastructure issues for a council during the period covered by its strategy, the principal options for managing those issues and the implications of those options. This strategy includes the core infrastructure assets identified in section 101B (6) of the Local Government Act being: • Water supply • Sewerage and the treatment and disposal of sewage (wastewater) • Stormwater drainage (stormwater) • Roads and footpaths (land transport). ASSET OVERVIEW We own and manage $607 million (replacement value as at 30 June 2021) of infrastructure assets which can be summarised as follows:

TABLE 1 ASSET SUMMARY ACTIVITY ASSET DESCRIPTION

Water supply • 6 water treatment plants • 17 reservoirs • 191km of waterpipes Wastewater • 6 wastewater treatment plants • 104km of pipelines • 18 wastewater pump stations Stormwater • 50km piped drains • 32km watercourse Land transport • 848km unsealed roads and 496km sealed roads • 1,548 streetlights • 341 bridges and larger culverts • 286 retaining walls • 70km footpaths • 16km of Council maintained cycleways

Sources: Three waters asset valuation Veolia (1 July 2020) and GHD Transport Revaluation report 2019/20 (excluding land value)

149 CURRENT ASSET STATE We have a sound understanding of the current state of our core infrastructure assets in terms of condition and performance as follows: • Three waters - The overall condition of the three water assets has been assessed between good and moderate for most asset classes and townships. • Land transport - The average quality of roads is measured in terms of Smooth Travel Exposure. The performance of our primary collector roads in terms of Smooth Travel Exposure is good when compared nationally, regionally and with other rural district councils. However, the other road categories do not perform or compare that well.

Asset condition and performance has been assessed at a high level for each activity and is covered in the Significant Infrastructure Issues Section of this strategy. SIGNIFICANT ISSUES There are significant infrastructure issues that we are faced. This is challenging with being a remote community and with small rating base to share the burden. In preparing this strategy, we have identified five strategic district infrastructure issues that need to be at the forefront of infrastructure planning and decision making: • Impacts of the Government’s Three Water Reforms • Meeting future demands on water and wastewater infrastructure to service Ohakune • Significant and complex challenges with upgrading wastewater treatment plants to meet higher environmental standards • Poor quality housing provision in the district to support population growth • Community affordability to pay for core infrastructure.

The Introduction Section of this strategy details the actions we will take to respond to the key strategic issues at district level as these are common to all activities. RENEWAL DEPRECIATION COMPARISON The below graph shows the combined annual renewals of $12 million (average) versus annual depreciation $8 million for the core assets. This shows that the forecast of renewals expenditure is higher than the depreciation over the 30-year period.

This is mainly due to the higher renewal investment in land transport than funded depreciation, and that gap is funded by Waka Kotahi NZ Transport Agency (Waka Kotahi). Three waters capital works are classified levels of service due to legislative and environmental requirements. Most projects are a combination of levels of service and renewals (i.e. like for like scenario). Combined renewal and depreciation (uninflated) 2021-2051

Councils draft LTP budget (as at June 2021)

150 OVERALL FINANCIAL SUMMARY

The table below shows the total expenditure capital (broken down into renewals, growth and levels of service) and operational expenditure of the 30-year period (2022-2052).

Expected total operating and capital expenditure (inflated)

Activity Capital Expenditure (30 year totals) Operational Expenditure (30 year

totals) Renewals Growth Levels of Service Operating Water Supply $113,363,409 $7,583,482 $73,739,476 $211,576,385 Wastewater $62,310,489 $9,007,844 $33,943,726 $127,985,933 Stormwater $10,816,331 $2,398,700 $9,723,614 $47,353,183 Land Transport $338,819,031 $3,507,736 $108,507,561 $688,361,818 Sub Total $525,309,260 $22,497,762 $225,914,378 $1,075,277,318 Total $1,856,305,886

Source: Council’s LTP budget (as at June 2021)

The figure below shows the most likely scenario for total operating and capital expenditure for combined assets.

Combined infrastructure operation and capital forecasts (inflated) 2021-51

Source: Council’s LTP budget (as at June 2021) Over the next 30-years it is expected that: • Renewal expenditure across all the infrastructure activities is generally constant, water supply and wastewater have high capital programmes in 2021/22 • Limited provision for growth across the portfolio at present, except in wastewater • Significant level of service investment in water supply treatment plants to comply with the Drinking Water Standards in the initial years than larger investment in wastewater to meet higher environmental standards

151 • Land transport focus is on maintaining and strengthening resilience of existing assets.

UNCERTAINTY AND IMPLICATIONS In developing this strategy, we have identified a few things that we do not know. This uncertainty has a flow on effect on the identification of issues, options for dealing with issues, and how we can best respond. This also impacts the Financial Strategy.

The most significant areas of uncertainty are Council’s reliance on grants and subsidies and the ability to deliver the three waters capital programme. Waka Kotahi has indicated a reduction in funding within the first three years of the Long Term Plan 2021-31. However it is expected this will revert to current level of funding from year four onwards. This is an established and mature process and plenty of opportunities to negotiate.

There is a level of uncertainty with successfully gaining the full amount from the Government’s three waters stimulus grant applied for upgrading water standards and wastewater assets across the district. We are planning to undertake these upgrades regardless of Government funding being successful or not (a portion of this funding has already been secured through a signed funding agreement and has been included in our financial projections). It is untenable for Council not to comply with the Drinking Water Standards. This will mean that the debt projections will be unaffordable for our community. Council will be exploring alternative funding options and investigate opportunities to alter scope and timing to reduce this risk. We therefore expect that we likely need to consult with the community through exceptions to future Annual Plans.

There has been a strong achievement on delivering the land transport capital works programme in the past three years. However, there has been under achievement in delivering the three waters capital programme. This has mainly been due to the time to get projects procured and approved to start. This is being addressed with a Section 17A review (requirement under the Local Government Act), update of the Contract with our service provider and to set up a streamlined process for procuring capital projects. Our discussions with potential suppliers have indicated that there is sufficient market capacity to respond to our current and future delivery programme.

Council wishes to accelerate the water supply capital programme to improve drinking water compliance. This acceleration requires a step change in programme delivery. External specialist consultants will also be used to deliver a proposed larger capital programme, particularly the upfront planning and bedding in good programme management disciplines. In summary, Council’s approach to mitigating the impacts of not securing Government funding is:

• Adopt an agile approach and closely monitor the delivery of our capital programme and identify changing priorities and consult with the community through exceptions to future Annual Plans • Actively manage the scope and timing of investment to minimise the debt burden on ratepayers, to the extent that it is able to do so while still meeting regulatory and legislative requirements.

152 INTRODUCTION This Infrastructure Strategy (strategy) sets out how Ruapehu District Council expects to manage its core infrastructure over the next 30 years. This strategy outlines a 30-year view of strategic issues, expenditure requirements and significant decisions that will need to be made. The core infrastructure that we provide our community to function includes our water supply, wastewater, stormwater, and land transport activities. These activities support economic activity, protect private property and the environment, and ensure public health.

It is very difficult to make firm plans beyond the 30-year timeline. Some assets such as bridges and water pipelines will probably be in existence after 30 years and the technical works that need to be done are reasonably predictable. The use that society will put them to is the most unpredictable aspect. Will users need bridges built to current standards? Will current water, stormwater and wastewater standards be acceptable? Will tomorrow’s tourists accept the same levels of physical commitment that today’s tourists accept? It is hard to predict with any certainty.

The Infrastructure Strategy is a high-level strategic overview of the issues involved with providing services for the next 30 years. It should be read in conjunction with the Financial Strategy and feeds into the Long Term Plan and its Consultation Document. The Activity Management Plans are detailed documents that form the basis of this overall strategy.

The 2021 Infrastructure Strategy outlines the investment programmes to ensure we are meeting our legislative obligations as well as maintaining service levels to our communities. We also need to consider how the national, regional and local economies are changing with the impact of the global trends (due to the pandemic).

In 2018, the Infrastructure Strategy covered core and non-core assets including community property and solid waste. The 2021 Infrastructure Strategy covers only core assets to focus on the significant issues, particularly for three waters.

There are significant infrastructure issues that we are facing as outlined in the following section. These issues are contemplated through the lens of the challenge of being a remote community with a small rating base to share the burden. PURPOSE OF THIS STRATEGY The strategy is a component of the Long Term Plan. It identifies what we are going to do to provide our services, manage our infrastructure, grow our District sustainably, care for our environment, and overcome our issues and challenges. It aligns with our Financial Strategy, in which we determine what we can afford to do, when we can afford to do it and how we will fund it. This strategy has been prepared in accordance with the requirements of section 101B of the Local Government Act 2002. This strategy includes the core infrastructure assets identified in section 101B (6) of the Local Government Act being: • Water supply • Sewerage and the treatment and disposal of sewage (wastewater) • Stormwater drainage (stormwater) • Roads and footpaths (land transport).

The purpose of an infrastructure strategy is to identify significant infrastructure issues for a council during the period covered by its strategy, the principal options for managing those issues and the implications of those options. This strategy also outlines the most likely scenario for the management of a council’s infrastructure assets during its 30‐year period, the estimated costs of managing those assets, the nature and timing of expected significant capital expenditure decisions and the assumptions on which the scenarios are based.

KEY THEMES We have decided to focus on core assets in this strategy due to the significant issues, particularly for three waters. Council wishes to make a step change in investment in core infrastructure, particularly for water supply and wastewater activities.

153 We must undertake the work to provide safe drinking water and public health to our community and the environment. We cannot deliver the required programme of capital investment and keep debt at levels that are affordable to our community.

The key themes are summarised in the following table.

Summary of key themes

KEY THEME WHAT IS THE KEY THEME?

We must provide safe drinking water for communities connected to the public systems. We intend to accelerate the investment programmes, so our public water supplies are fully Key Theme 1 compliant with the Drinking Water Standards. This is the highest priority of the three water Providing safe drinking water is a activities. high priority This accelerated programme will impact our debt levels and therefore community affordability (refer to Key Theme 4 below). Key Theme 2 Although providing safe drinking water is a high priority, we must always address public health Must address public health and and safety concerns, particularly from the wastewater impacts. Wastewater overflows are safety impacts from three water unacceptable to our community and impacts the waterways. activities Critical bridges in our District have been identified for replacement or urgent strengthening have been brought forward in our investment programme. We have accelerated the funding with our partner Waka Kotahi and is also high safety risk for Council. Key Theme 3 Decisions need to be made on other bridges on whether to retain or divest. This will impact Decisions on critical bridge local communities as the alternative route will create longer journey times in most cases and replacement the current restrictions limit the class of vehicles that can use them. In the past these bridge works have been deferred due to affordability but has now reached a critical stage where the work must be undertaken. Accelerating the investment programmes, particularly for providing safe drinking water, means Key Theme 4 the debt levels will not be affordable. We are seeking Government funding where possible. Investment programmes will be However, if we are unsuccessful, we intend to still undertake these programmes as public unaffordable for our community safety is a must do (ie non- negotiable) and cannot be deferred. The 2021 Long Term Plan including this strategy is based on the best information available. Many of the key inputs, legislative changes and decisions to be made are changing at a rapid Key Theme 5 pace. Rapidly changing priorities We therefore expect that we likely need to further consult with the community through exceptions to future Annual Plans as the uncertainty with the information reduces. It is important that our town centres are vibrant and attractive for our community for our district Key Theme 6 to thrive and prosper. This is also important to keep existing residents but also to attract people Township revitalisation for moving from the large metropolitan cities to the regions. District’s prosperity We also need to be attractive to domestic tourist and have to compete with other districts offering similar outdoor activities. There is new monitoring and stringent enforcement of the existing wastewater resource consents. This means Council will expect an increase in the number of non-compliances issued by the Regional Council until new / upgraded treatment plants are completed. Key Theme 7 We will continue to investigate short to medium term solutions until permanent solutions are Increased operational obligations agreed and funded. Wastewater solutions are more complex compared to water supply and stormwater. It is also likely that Taumata Arowai will also have higher expectations for drinking water compliance from local authorities that current practices.

SIGNIFICANT ISSUES In preparing this strategy, we have identified five strategic district infrastructure issues that need to be at the forefront of infrastructure planning and decision making: • Impacts of the Government’s Three Water Reforms • Meeting future demands on water and wastewater infrastructure to service Ohakune • Significant and complex challenges with upgrading wastewater treatment plants to meet higher environmental standards • Poor quality housing provision in the district to support population growth • Community affordability to pay for core infrastructure.

The following table summarises key strategic issues, implications and Council’s response as these are common to all activities. The significant issues for each activity are covered in later sections.

154 Significant district issues

SIGNIFICANT DISTRICT DISCUSSION AND IMPLICATION COUNCIL’S RESPONSE ISSUE Impacts of the The water reforms will be the most significant issue Council will need Council’s management response to the change in legislation has Government’s Three Water to consider with the 2021 Long Term Plan. It will impact the way we been to collaborate with the other councils in the Manawatu- Reforms deliver three waters to our communities and the cost of providing these Whanganui Region to identify a preferred three waters management services. Taumata Arowai Water Services Regulator Act has been option. The councils located in the region undertook a collaborative passed and the complementary Water Services Bill is expected to be study in 2018 to identify a preferred three waters management option. passed in mid-2021. The standalone Crown entity Taumata Arowai is The study involved an asset stocktake, analysis of resources and being created to regulate drinking water. The Government’s Three funding, and engagement with Council local representatives. Waters Reform Programme is strongly encouraging councils to A regional agreement has been formed for a staged approach to consider changes to their delivery methods with the preferred outcome increasing regional coordination to build a strong alliance and being semi regional / regional / multi-regional or national suppliers. maximise benefits for the region’s communities. Meeting future demands on Ohakune is experiencing significant population growth based on large Council have implemented the following initiatives to address these water and wastewater number of building consents received for new subdivisions. The main challenges: infrastructure to service drivers for the rapid growth in Ohakune are: • Completion of the Raetihi Water Treatment Plant Upgrade in 2018 Ohakune • Popular cycleway track round the mountains creating all year round • Initiating the planning and design of the Ohakune Water tourist demand Treatment Plant capacity upgrade in 2020 • Commercial growth such as new industry and Turoa gondola • Undertake modelling for Ohakune township for water supply and • Affordable housing required for workers to meet the tourist demand wastewater to understand and plan for the rapid population and new industries (mainly short term rental accommodation) growth • Continuing to be a popular holiday house destination. • Start investigations for a new Wastewater Treatment Plant to Peak population is the key tool to plan for core infrastructure particularly service Ohakune and Raetihi that will address future growth, as water supply and wastewater. These seasonal peaks have a large well as the long-standing issue of non-compliance at the Ohakune impact on demand for water services. Wastewater Treatment Plant (related to ammonia and suspended The Ohakune Water Treatment Plant is nearing capacity. The existing solids) and strengthen resilience Ohakune Wastewater Treatment Plant largely meets the Regional Council’s One Plan (single resource management planning document for the Horizons Region). Future growth will produce a tipping point where the treatment technology will need to change. Significant and complex Taumata Arowai will provide oversight of wastewater and stormwater We will continue to work collaboratively with iwi, Regional Council and challenges with upgrading networks and administer the drinking water regulatory system for stakeholder groups as the platform for co-management for a holistic wastewater treatment plant drinking water safety. Together with the Government’s suite of and integrated wastewater management approach. We need to to meet higher proposed legislation and regulation changes to improve the freshwater identify long term sustainable solutions that are affordable for our environmental standards ecological health, as well as the Regional Council’s One Plan, these community. significant national and regional changes will impact the cost of upgrading our wastewater treatment plants and may not be affordable for our community or provide the desired environmental outcome.

155 Poor quality and affordable Housing is one of the biggest issues the Ruapehu community faces. As part of the Government’s response to help offset the economic and housing provision in the Identified issues include a shortfall of quality houses, changing social impacts of COVID-19, Council has been granted about $1.4 District to support demographics and increasing waiting list for social housing. million for a small pilot build (Moore Street, Ohakune) as part of the population growth The housing stock in the Ruapehu District is dominated by older family Social and Affordable Housing project (subject to negotiation between homes with a general lack of affordable new homes and homes fit for Council and Crown Infrastructure Partners). This grant has been a purpose outside the traditional family unit. Modest sized, new, catalyst for Council to reconsider the scope of its role in helping to affordable, and fit for purpose homes are in short supply in the address Ruapehu’s growing housing issues. Currently this is limited Ruapehu District. Accessible homes suited to age in place and to a small number of social housing units. The rate of new housing disability are also in limited supply. provision will be determined by the available external capital and Ohakune is experiencing significant population growth, great than suitable land for reconfiguration. The housing provision may trigger expected as noted above. Although Taumarunui has been identified services upgrades including water services. It is expected that there as the main town for providing quality and affordable houses to meet will be an agreement in place to share upgrade costs attributed to the future needs, providing core infrastructure to enable growth in each new development. Ohakune is the priority in the short to medium term. The Social and Affordable Housing project is still in the early stage, Taumarunui is a centrally located town in the North Island for different so any upgrade costs have not been allowed for in this strategy and industries including forestry and Ruapehu Alpine Lifts. It is at1tractive expected to be provided in the 2024 Infrastructure Strategy. for permanent residents moving out of the large cities to the regions. The focus is on providing quality and affordable houses in Taumarunui and providing core infrastructure to enable growth in Ohakune. Council’s three waters and land transport asset groups need to be aligned to the Social and Affordable Housing project for future demand planning. Community affordability to Community affordability to pay for core infrastructure is a challenge for Overall, Council needs to make sure its infrastructure is well pay for core infrastructure Ruapehu District with the with a small rating base as well as higher maintained to avoid future unexpected costs for repair or levels of deprivation compared to other parts of the country (when using replacement, and to prevent unexpected disruption of services to the the New Zealand Deprivation Index). On a scale of 1 to 10 (least to community. most deprived scores, the main townships are assessed individually Our key initiatives include: ranging from 6 to 10 (based on 2018 Deprivation Index). • Revitalising our housing portfolio, working with partners and Council needs to think more broadly about how to fund its infrastructure seeking Government funding through the Social and Affordable programme. This will therefore challenge Council to look for alternative Housing project (as noted above) funding sources. • Maintaining relationships with Waka Kotahi to ensure Council’s Over the life of this strategy Council needs to understand the funding proposed land transport programmes are fully funded options available, including Waka Kotahi NZ Transport Agency • Continuing engagement with funding sector through alignments subsidies, other Government funding, other grants and subsidies, user and programmes such as Road Efficiency Group. fees and charges, potentially development contributions, and • Set priorities based on alignment with our vision, community partnerships to deliver services to the district. Alternative funding feedback and economic development aspirations as set out in sources will enable Council to reduce the financial impact of increased Council’s Ruapehu Economic Development Strategy 2018- infrastructure costs to our ratepayers. 2028 and the Recovery Programme • Seek Government funding for the significant costs of treatment plant upgrades (water supply and wastewater) to meet increased demand more affordable to the local community

156 STRATEGIC LINKAGES The document is part of a suite of documents including the Financial Strategy, Consultation Document, Long Term Plan, Activity / Asset Management Plans and associated policies. This Infrastructure Strategy supports Council’s Vision, Focus Areas and Outcomes. Council’s Future Vision is to:

Council’s Focus Areas are inspired by and support the Vision:

157 Council has stated its core priorities in the form of Community Wellbeing Outcomes:

These Outcomes are Council’s true north for planning and decision-making. Every project that Council undertakes links back to at least one of the wellbeing outcomes. These are a key way we measure success. The specific ways that infrastructure contributes to the Vision, Mission and Community Outcomes are best thought about by noting the following Outcomes: Community Wellbeing Outcomes

158 LEGISLATIVE CHANGES The key legislative changes that are either planned or underway that will impact the delivery of core infrastructure are summarised in the following table including Council’s response to these changes. Summary of legislative changes

LEGISLATIVE IMPLICATIONS COUNCILS RESPONSE CHANGES Water Reforms The pending water reforms will impact the Three waters - We are collaborating with way we deliver three waters to our the other councils in the Manawatu- communities and the cost of providing these Whanganui Region to identify a preferred services. The Government’s latest Three three waters management option. Waters Reform Programme is strongly Refer to Significant Issues Section for further encouraging Councils to aggregate at discussion. regional / sub regional level to be considered for the funding package. Regional approaches will be favoured for the funding with conditions attached. Zero Carbon The Climate Change Response (Zero All activities - The Zero Carbon Act will Carbon) Amendment Act includes a target impact Council’s asset portfolios including of reducing emissions of biogenic methane three waters and land transport. The Act within the range of 24 to 47% below 2017 does not explicitly exclude any activities levels by 2050, and an interim target of such as methane produced at wastewater 10% by 2030. It also has a target of treatment plants. Council will consider Zero reducing net emissions of all other Carbon Act with its decision making and is greenhouse gases to zero by 2050. still to develop formal strategy / action plan in response. Road to Zero The Government has recently released its Land transport - Safety has been proposal for the new road safety strategy, incorporated into Council’s Programme Road to Zero. The proposed Vision Zero is Business Case for the land transport activity. based on a world leading approach that This includes: says no death or serious injury while • Use of Low Cost Low Risk Programme traveling on our roads is acceptable. to address safety issues. • Safety audit and inspections. • Investigation of all serious and fatal crashes. • Increase driver education and safety campaigns. Government Policy The Government Policy Statement on Land Land transport - The district seeks to Statement on Land Transport (2021) (final September 2020) achieve the Government Policy Statement Transport signals Government’s shift to investing in strategic priorities through maintenance and improving people’s wellbeing and the renewal, minor safety work and a Walking liveability of places. This recognises the and Cycling Strategy. importance of society. Modal shift, freight connections and urban form are major issues to address. Freshwater The Action for Healthy Waterways package Stormwater Management sets higher standards around the We need to develop evidence based strategy cleanliness of swimming spots, includes a and programmes to be more proactive in new bottom line for nitrogen toxicity, sets stormwater quality than our current practices, controls for farming practices like winter aligned with the new requirements. Refer to grazing and how much synthetic fertiliser is Significant Issues Section for further used and requires mandatory and discussion. enforceable farm environment plans. There are new requirements with the National Policy Statement for Freshwater Management 2020 including giving effect to Te Mana o to Wai, improving degraded water bodies, and maintaining or improving all others using bottom lines, and an expanded national objectives framework.

159 STRATEGIC CONTEXT

RUAPEHU DISTRICT Ruapehu District Council was established on 1 November 1989 by a merger of the former Taumarunui Borough Council, Taumarunui County Council, Waimarino District and part of the Rangitikei County Council.

Historically, the Taumarunui County included the Ohura Town Board, Ohura County and Kaitieke Councils. Waimarino included Ohakune and Raetihi Boroughs. Ruapehu is consequently diverse.

The District comprises 6,700km2 (673,019ha) of land bordered by the Whanganui River in the west and the Hauhungaroa Range in the north-east. It stretches towards the peaks of Tongariro, Ngauruhoe and Ruapehu.

There are two large National Parks in the District, Tongariro (which has dual World Heritage status for culture and landscape) and Whanganui. The Tongariro National Park is the largest park in the Region and is the oldest national park in the country, established in 1887. The volcanoes Tongariro, Ruapehu and Ngauruhoe are sacred to Māori and were gifted to the nation by Te Heuheu Tukino IV, paramount chief of Ngāti Tuwharetoa. Pureora Forest Park, Tongariro Forest and Waitaanga Forest are also significant areas of indigenous vegetation.

Abundant natural resources and world-renowned scenery are defining characteristics of our District. The rural landscape sustains large farming, forestry, horticulture industries and reserve land. Nearly 90% of land value is in the rural sector.

The largest township is Taumarunui, which sits in the north of the District at the confluence of the Whanganui and Ongarue Rivers. Taumarunui has a rich history of Māori settlement. Recent activity includes farming, sawmilling, railway and river Tourism. In recent years, the town’s economy is being boosted by new tourism business, a new industrial business, river tourism and the nearby Timber Trail Cycleway.

To the south lies Ohakune, a tourist hotspot situated at the southern gateway to Tongariro National Park. Raetihi in the south west has positioned itself as a gateway to tourism around the Whanganui River and the nearby Mountain to the Sea Cycleway. Waiouru is the southern-most town in the District which borders New Zealand Defence Force land and largely serves the military training area.

160 OUR COMMUNITY

Ruapehu District is home to a stable resident population of around 13,000 (12,309 with 2018 census). The district experienced population decline between 2001 and 2016 and began to show signs of recovery in 2017. The resident population is predicted to steadily increase overall between 2021 and 2043 under either of the low, medium and high growth scenarios.

Population growth is expected to slow due to the impacts of COVID-19, at least in the short to medium term, given the region’s reliance on net migration. The Region’s economic performance comparative to other regions may lead to increased inward internal migration.

At the township level, Ohakune is experiencing significant population growth based on the large number of resource and building consents received for new subdivisions (as noted under Significant Issues). Taumarunui is also experiencing growth but not as rapid as Ohakune.

The District’s population increases dramatically with visitor numbers. The main holiday towns are National Park, Ohakune, Raetihi and Rangataua. Peak population is the fundamental tool we use to plan for the expected demand placed on our key infrastructure assets in the District. The recommended growth projection scenarios to be used for this strategy and for infrastructure planning purposes are: • High growth for the tourist towns of Ohakune and National Park village • Medium growth for the other townships (Raetihi, Taumarunui, Waiouru and Tangiwai) • Low growth for the small rural townships of Otangiwai-Ohura.

This population profile of residents, tourists and holiday homeowners creates challenges to balance between residents and non-resident ratepayers and holidaymakers’ changes. There is 43.4% of our district’s population that identifies as Māori as shown below. The Māori ethnicity is significantly more dominant in the Ruapehu compared to the national rate of 16.5%.

Ethnic composition of Ruapehu District

Ethnicity

European Māori Pacific peoples Asian Middle Eastern/Latin American/African Other ethnicity

Source: New Zealand Census (2018)

The District’s age distribution is skewed reflecting residents, tourists and holiday homeowners’ profile. Key trends in service age groups that need to be considered with our infrastructure planning are: • The District continues to have a higher proportion of children aged 0 to 11 when compared nationally. • The 18 to 24 age group continues to decline and remain lower than the national average and is expected to continue to do so.

161 • The young workforce aged 25 to 34 proportion of the population is expected to remain constant. • The population is aging and expected to continue: . Empty nesters and retirees (aged 60 to 69) significantly increasing in number and this trend is expected to continue . Seniors (aged 70 to 84) are steadily increasing in number and following the significant increase of empty nesters and retirees, is expected to continue to slowly, yet steadily, increase. . The number of elderly (aged 85 and over) is expected to remain steady.

NATURAL HAZARDS Ruapehu District has many physical attractions such as Mount Ruapehu and two national parks, which also could negatively impact the infrastructure and townships. The major natural hazards that affect Ruapehu District are earthquakes, volcanic activity, landslides and river flooding.

The District encompasses some of the most seismically active parts of New Zealand. Mount Ruapehu has erupted at least 18 times since 1861 and has produced numerous lahars. The most recent lahar occurred on 18 March 2007.

Taumarunui is located at the confluence of the Whanganui and Ongarue Rivers. Whanganui River is the largest river system in the Region, and it drains a significant proportion of the land area within the Ruapehu and Whanganui districts. The primary area of risk is Whanganui, with some risk also present at Taumarunui.

The Region is susceptible to various types of landslide events over a significant proportion of the Region, and in particular the hill country within Ruapehu District. The most hazardous events are debris flows associated with lahars from Mount Ruapehu.

TANGATA WHENUA Increasingly, legislation is requiring that iwi have a greater role in the governance or decision making for key assets such as water. Major infrastructure projects require significant input from iwi to ensure cultural considerations are understood and provided for.

The Water Services Bill states that all persons and functions in the three waters activity must give effect to Te Mana o te Wai. This includes suppliers, territorial authorities, and regional councils, and Taumata Arowai.

Along with Māori and the wider community, Council has been reviewing the best way Māori participation in decision making can continue. This included looking at a wide number of options, such as the Ruapehu District Māori Council and Māori Electoral Wards.

The Ruapehu District Māori Council was established by Council to help encourage greater participation by Ruapehu Māori in local government decision-making. A Memorandum of Understanding was signed on 15 February 2013 at Morero Marae and sealed a partnership between the Ruapehu District Māori Council and Council. The Ruapehu District Māori Council comprises a collective of nine representatives from the following iwi within the Ruapehu District: • Tuwharetoa • Maniapoto • Southern Iwi

TREATY SETTLEMENT The Government is actively engaged in treaty settlement with claimants recognised as large natural groupings. However, the mechanism of delivering settlement and governance has been left to regional and local government to consider delivery, which are being progressed alongside other changes.

Some Council infrastructure assets are located on land that currently are part of the Treaty Settlements. There is uncertainty with this current state and a pragmatic mechanism is required for dealing with these

162 assets. The location of these assets may need to be considered in future as they are replaced / upgraded.

TOURISM TRENDS Tourism is the most significant industry in the District. It is a well-known gateway to Tongariro and Whanganui National Parks and located at the base of the western side of Mt Ruapehu is Ohakune, a popular tourist destination because of its access to Turoa ski field. Another popular tourist stop is National Park, located between Tongariro and Whanganui National parks, well known for its hiking and biking trails, as well as access to Whakapapa ski field. The District’s cycleways have created a summer tourist attraction.

If COVID-19 border restrictions remain in place for an extended period (up to 18 months), then it is expected that (based on Waka Kotahi’s study October 2020 on the potential implications of): • Greatest impact on tourist gateways (Christchurch and Auckland), and districts that rely on tourism • Significant drop in revenue in tourist areas and associated service industries • Potential offset from Trans-Tasman bubble • Significant drop in revenue in tourist areas and associated service industries • Potential offset from Trans-Tasman bubble.

The Manawatū-Whanganui Region is expected to be less impacted as it is also the country’s least reliant on international tourism. There is only 17% of tourism spend in the Region coming from international visitors.

ECONOMIC TRENDS There is much uncertainty about the potential economic impacts on the Region as the global COVID- 19 pandemic unfolds. The potential economic impacts on the Region have been considered by various independent sources.

Potential impacts on key sectors are (based on the Waka Kotahi study October 2020 on the potential implications of COVID-19): • Manawatū-Whanganui Region economy is forecast to perform better than most during the economic slowdown • Significant levels of primary production outside of the main urban centres are also expected to help mitigate the impacts of the economic slowdown on the region • Ruapehu District’s forecast fall in employment to 2021 (relative to BAU) is 7.9% and to be impacted harder than the rest of the region due to its greater reliance on tourism.

Infometrics suggest that the economic hit to Ruapehu will be smaller than that of many other districts. The Ruapehu District economy relies heavily on primary production and tourism. The global pandemic event has disrupted the national and local economies with the national lockdown and closing of international borders. This will mainly impact on the demand for infrastructure and the community’s ability to pay in an economic recession.

Council’s response is to develop the Recovery Programme including rethinking the shape of future tourism. Ruapehu Economic Development Strategy 2018-2028 and Ruapehu Recovery Thought Leaders Group will provide strategic direction for the District’s recovery. This will help rebuild domestic tourist demand and encourage trans-Tasman international tourism.

INFRASTRUCTURE PLANNING

LEVELS OF SERVICE The high-level customer levels of service for the infrastructure are set out in the table below with the detail provided in the Activity Management Plans. The level of service framework provides alignment and strategic linkages between: • Our Vision • Community Outcomes

163 • Infrastructure Strategy • Activity Management Plans • Activities

Levels of service for infrastructure include customer outcomes (i.e. responding to unplanned water interruptions) as well as meeting legislative requirements (i.e. compliance with resource consents). Any major service level changes and implications long term are identified for each activity. Generally any significant service level will be consulted with the community through the Long Term Plan process.

Community and key stakeholder engagement on developing levels of service for water services and land transport uses the following main consultation initiatives (with further detail provided in each Activity Management Plan): • Resident satisfaction surveys • Consultation with community groups for Annual Plan and Long Term Plan • Service request response levels • Joint governance catchment groups for shared values related to water including Whangaehu River Catchment project. • Treaty settlement co-governance groups Te Awa Tupua (Wanganui River) • Liaise with road user stakeholder groups including freight and ski operators. .

164 CUSTOMER LEVELS OF SERVICE

COMMUNITY CUSTOMER CUSTOMER LEVELS OF SERVICE- ACTIVITY OUTCOMES OUTCOMES OUTCOMES WATER SUPPLY WASTEWATER STORMWATER LAND TRANSPORT Safe, Healthy Safety Providing quality and safe drinking Provide public safety through Stormwater systems protect How users experience the safety of the Communities water to applicable community areas continuous of wastewater houses from flooding in urban road collection system areas

Thriving Economy Quality / amenity / To provide reliable water networks To provide reliable wastewater To provide reliable stormwater The level of travel comfort experienced by reliability networks and treatment networks and treatment the road user and the aesthetic aspects of

the road environment that impact on the travel experience of road users in the road corridor Travel time reliability – the consistency of travel times that road users can expect Thriving Economy Accessibility / Safe water pressure and flow is All urban residents are provided All urban residents are provided The ease with which people are able to Availability supplied to consumers with adequate wastewater with adequate stormwater reach key destinations and the transport provision provision networks available to them, including land use access and network connectivity

Safe, Healthy Resilience Water supply disruption during Wastewater disruption during Stormwater disruption during The availability and restoration of each Communities natural disaster events is minimised natural disaster events is natural disaster events is road when there is a weather or minimised minimised emergency event, whether there is an alternative route available and the road user information provided Thriving Economy Responsiveness To provide prompt responses for To provide prompt responses for To provide prompt responses for To provide prompt responses for service service service service

Thriving, Natural Environmental To promote the efficient and Environmental impacts are Environmental impacts are Effects on the natural environment are Environment Sustainability sustainable use of water managed and resource consents managed and resource consents minimised complied with complied with

165 RISK MANAGEMENT OUR RISK MANAGEMENT APPROACH Our approach for managing infrastructure balances risk and performance while providing cost effective services. Infrastructure risks can be considered in terms of global threats (such as climate change), national (legislative changes), corporate and asset risks. At an activity level, these infrastructure risks need to be considered holistically as part of the asset management planning approach and not taken in isolation.

The following sections outline how this is addressed for each activity with the detail provided in the Activity Management Plans.

CLIMATE CHANGE IMPACTS AND ACTIONS Climate change is a major management issue facing all infrastructure providers and the built environment. Ruapehu District is tested further as it has physical constraints / natural hazards including the Mountain and is subject to intense weather events that need to be considered in the context of climate change impacts. It is also exposed to a variety of natural hazards including earthquakes and volcanic eruptions.

Projections: Climate change will affect our district over the medium to long term in line with projections provided by the Ministry for the Environment for the Manawatu-Whanganui Region (as at May 2018). The major trends expected for the Region are summarised in the table below (with the full projections list detailed in the 2021 Long Term Plan), with rainfall expected to have the largest change particularly for Taumarunui:

Climate change predictions for the region WEATHER 2040 2090 ASPECT Temperature Compared to 1995, temperatures 0.7˚C to 3.1˚C warmer by 2090 are likely to be 0.7˚C to 1.1˚C warmer by 2040 Rainfall The largest changes will be for Seasonal projections show winter rainfall increasing 7 particular seasons rather than to 16% in Taumarunui by 2090. annually Region is not expected to experience a significant change in the frequency of extreme rainy days as a result of climate change Wind The frequency of extremely windy days in the region is not likely to change significantly by 2090 Storms Future changes in the frequency of storms are likely to be small compared to natural inter-annual variability. Some increase in storm intensity, local wind extremes and thunderstorms is likely to occur. Snowfall A reduction in the number of snow days experienced annually is projected throughout New Zealand, including the Central Plateau.

The reduction in snow days may impact winter tourism at Mt Ruapehu, although this is a long term projection.

We follow Horizon Regional Council lead in preparing for climate change. Horizon Regional Council has provided the regional impact of climate change (see Asset Management Plan Part 1) and are partnering with district councils in community engagement.

Carbon footprint: Horizon Regional Council have developed a greenhouse gas footprint for the region and each territorial authority for 2018/19. Ruapehu emitted gross 1,203,611 and net 191,684 tonnes of Carbon Dioxide Equivalent emissions in 2018/19. The population in 2019 was approximately 12,700 people, resulting in per capita gross emissions of 94.8 tonnes of Carbon Dioxide Equivalent per person. Agricultural emissions were the largest contributor to the inventory for Ruapehu, followed by transport as shown in the Figure below

166 Ruapehu greenhouse gas emission (gross) by sector for 2018/19

Source: HRC Ruapehu Community Carbon Footprint 2019 (AECOM August 2020)

The stationary energy sector covers the consumption of electricity and natural gas. The Industrial Processes and Product Use (IPPU) sector covers emissions associated with the consumption of greenhouse gas for refrigerants, foam blowing, fire extinguishers, aerosols, metered dose inhalers and Sulphur Hexafluoride for electrical insulation and equipment production.

Ruapehu contributed to 14% of the Region’s total gross emissions for 2018/19. Ruapehu had the fourth highest emissions in the region, predominantly due to particularly large agricultural emissions. With a small population and high gross emissions, Ruapehu has extremely high per capita gross emissions (over nine times higher than Palmerston North).

The greenhouse inventory provides information for decision-making and action by Council, our stakeholders, and the wider community. Sector-level data allows the council to target and work with those sectors which contribute the most emissions to the footprint.

Climate change actions: Our specific proposed climate change actions including indicative timeframes are outlined in the following table at activity level with further detail in the Activity / Asset Management Plans.

167 Proposed climate change actions

Activity Most likely effects due to climate change Proposed actions Water • Increasing extreme weather patterns with • Chlorination at all water treatment plants supply storms of increasing intensity and provides for bacterial (E.coli) protection frequency will also increase the and ensures network disinfection challenges of making potable water from residual highly turbid waters • Linking reticulation networks where possible (Ohakune and Raetihi Treatment Plants) • Increasing dry periods (droughts) are • Upgrade treatment plants / reconfigure reducing the recharge zones in the river supply areas to address reduction in so they have less flow which can extend demand due to restrictive consent for longer periods of time conditions for water takes from rivers and streams Wastewater • Inflow and infiltration increase and • Continue with implementing targeted reduces pipeline capacity during storm infiltration and inflow programme to events resulting in more frequent wet prioritise the catchments for remedial weather overflows works • Pump station vulnerability due to flooding • Identify wastewater pump stations at risk inundation due to flooding inundation Stormwater • More frequent flooding may increase with • Continue to monitor flooding risk to more intense and frequent storms residential properties with the more intense and frequent storms • In the longer term the townships • Developing a process with Horizons to protected by the regional stopbanks such capture stormwater culvert changes over as Taumarunui may be at risk time to provide inputs into modelling of flooding capacity and map updates Land • Road slips / under slips • Identification of the critical roads (such transport • Limited access to communities with as the Ohakune Mountain Road and single road Raetihi-Ohakune Road) with more frequent inspections and management strategies • Increased inspection / maintenance of road drainage systems • Long term maintenance contract to have suitable resources keeping land transport network resilient

KEY NATIONAL RISKS The key national risks that we are managing are mostly related to legislative changes and summarised for each activity. It is expected that these risks will increase with the proposed three waters reforms and Action for Healthy Waterways as there will be increased compliance and quality management requirements. The Government Policy Statement on Land Transport (2021) signals the Government’s shift to investing in improving people’s wellbeing and the liveability of places.

168 MANAGING FINANCIAL RISKS The 2021 Long Term Plan signals a step change in Council’s investment in core infrastructure. This will allow for providing safe drinking water and public health to minimise adverse wastewater impacts to our community and environment.

To date Council has taken a prudent approach to ensure that the debt levels were kept within the financial benchmarks. This ensured that the ten year investment programmes were affordable for our community.

Council now wishes to accelerate the investment programmes, mainly in water supply and wastewater, to ensure that we are meeting our legislative obligations to our community and key stakeholders. The proposed debt projections are detailed in the Financial Strategy.

The most significant areas of uncertainty are Council’s reliance on grants and subsidies and the ability to deliver the three waters capital programme. Waka Kotahi has indicated a reduction in funding within the first three years of the Long Term Plan 2021-31. However it is expected this will revert to current level of funding from year four onwards. This is an established and mature process and plenty of opportunities to negotiate.

There is a level of uncertainty with successfully gaining the full amount from the Government’s three waters stimulus grant applied for upgrading water standards and wastewater assets across the district. We are planning to undertake these upgrades regardless of Government funding being successful or not (a portion of this funding has already been secured through a signed funding agreement and has been included in our financial projections). It is untenable for Council not to comply with the Drinking Water Standards. This will mean that the debt projections will be unaffordable for our community. Council will be exploring alternative funding options and investigate opportunities to alter scope and timing to reduce this risk. We therefore expect that we likely need to consult with the community through exceptions to future Annual Plans.

Council’s ability to deliver the three waters capital programme is outlined in the section below and in the Financial Strategy.

A high level assessment of the levels of uncertainty for gaining external funding and delivering the capital programmes is summarised in the following table (and detailed in the Financial Strategy).

Is the Comments Grant Third party Potential Chance of required Activity funding investment debt practical (ie must Source certainly impact delivery do) There is a strong chance that funding support from Central Government will be available to fast track drinking water Water DIA / Yes Moderate High Moderate reform changes. However, MIBE supply this Long Term Plan cannot include this possibility with key assumptions due to timing of any such announcements. There is also support for the idea that drinking water outcomes will be prioritised, DIA / Moderate Wastewater Yes Low High and immanent funding MIBE / low support announcements for wastewaters appear a little further off Long Term Plan does not DIA / Moderate make any assumptions Stormwater Yes Low Moderate MIBE / low around possible funding opportunities in support of

169 Is the Comments Grant Third party Potential Chance of required Activity funding investment debt practical (ie must Source certainly impact delivery do) Stormwater. Environmental standards continue to shift the focus and outcome requirements in this space, and planning with certainty is quite challenging Well established supply chain and committed funding. There is potential that some bridge work not covered by Waka Land Waka Kotahi will require Council to Yes Very high Limited High transport Kotahi fund which it would do through debt. These are one off items in what is otherwise a very stable work programme. As part of our Financial Strategy, Council will continue to pursue all available opportunities to receive grant funding to minimise the burden on ratepayers. Where grant funding is not forthcoming, Council will seek to actively manage the scope and timing of investment to minimise the debt burden on ratepayers, to the extent that it is able to do so while still meeting regulatory and legislative requirements.

We recognise that we need to be agile to change and the three yearly Long Term Plan cycle may be too long for changes in investment priorities and the ability to deliver our larger capital programme. We intend to closely monitor the delivery of our capital programme and identify changing priorities through exception to the Annual Plan (refer to Key Theme 5 in Introduction Section). In summary, Council’s approach to mitigating the impacts of not securing Government funding is: • Adopt an agile approach and closely monitor the delivery of our capital programme and identify changing priorities and consult with the community through exceptions to future Annual Plans • Actively manage the scope and timing of investment to minimise the debt burden on ratepayers, to the extent that it is able to do so while still meeting regulatory and legislative requirements.

EMERGENCY READINESS Council maintains a Civil Defence Readiness Plan which lists many risks inherent in our area. These include volcanic, geological, earthquake, weather, civil unrest and technological failure risks. The same basic Civil Defence responses will mitigate the effects of any of these risks.

Critical assets are defined in Council’s lifelines and Civil Defence documents. The Council asset seen as most critical for life and limb is the roading asset. Once communication and access is restored, other services can follow. In order to keep roads open, Council contracts for remotely located subcontractors, including heavy machinery response and staff.

There is a possible threat to public safety if water and wastewater assets do not operate within legislated limits. To this end we have identified critical assets in each AMP. Extra steps are taken to protect these critical assets and to provide for spares where possible.

There are no significant concentrated centres of population within the District and hence it is likely that there is an ability for the population to sustain itself for a significant period following an emergency. The farming community is relatively self-sufficient.

Council could lower its state of readiness for Civil Defence or increase the state of readiness. At present Council supports one staff member who encourages community groups and trains all Council staff for Civil Defence emergencies. This works well for relatively small events. In larger events Council relies on support from Central Government. The status quo is Council’s preferred option.

170 CAPITAL DELIVERY It is important that we deliver the planned capital works programme for our core infrastructure to ensure service continuity for our communities. We know it is important to deliver our planned capital works programme, particularly for the three waters. We wish to increase the investment levels over the next 30 years to address the key issues such as meeting the Drinking Water Standards and higher environmental standards. We recognise that we need to increase our capability to deliver the current levels to ensure we are successful on delivering a higher level of investment.

When there is an under achievement of the capital works programme, this means our ratepayers pay for work that has not been performed. Potentially there is a reduction in service levels when necessary renewals are not completed.

There has been a strong achievement on delivering the land transport capital works programme in 2018/19 and 2019/20 at 107% and 102%. There has been under achievement in delivering the three waters capital programme, mostly under 50% for the last three years and wastewater has been less than 20%. Capital delivery improved in 2019/20 for the water supply activity at 71% of the budgets. Failures to deliver capital works has mainly been due to the time to get projects procured and approved to start. This is being addressed with a Section 17A review (requirement under the Local Government Act), update of the Contract with our service provider Veolia and to set up a streamlined process for procuring capital projects.

Council wishes to accelerate the water supply capital programme to improve drinking water compliance. This acceleration requires a step change in programme delivery. External specialist consultants will also be used to deliver a proposed larger capital programme, particularly the upfront planning and bedding in programme management disciplines. Our discussions with potential suppliers have indicated that there is sufficient market capacity to respond to our current and future delivery programme.

Due to the increase in the capital works programme, there are unknown certainties beyond Councils control, such as demand and pressures on contractors market, availability of raw materials and the potential impacts of Covid-19 on the supply chain. If a project is affected by this, it could see our levels of service not improve as fast as Council had originally planned as well as the potential for risk of asset failure.

MANAGING CAPITAL DELIVERY Council will make a step change in capital investment being $16.7m (75.3% more) –$39m in 2021/22 vs $22.2m in 2020/21 in core infrastructure spend. The total capital works programme in the Long Term Plan is $234m. This is driven in particular by the water supply and wastewater activities. Council has confidence in its ability to deliver its capital works programme because of the following: • Significant effort has been put into ensuring we are able to deliver the planned network and capital works programme. • A strategic reorganisation of Council. This has seen the creation of a dedicated Infrastructure Manager position with responsibility of overseeing all major capital work delivery. • Council works closely with contractors and funders to ensure we have the financial, human, technical and other resources required to successfully deliver the accelerated programme. • This has included a revision of our contracts with key suppliers Veolia who has employed an additional 24 FTEs to support the programme. • Land Transport we have maintained relationships with Waka Kotahi NZ to help ensure Councils land transport and bridge renewal programme. We have maintained on-going engagement with programmes such as Road Efficiency Group.

171 INFRASTRUCTURE OVERVIEW

ASSET OVERVIEW We own and manage $607 million (replacement value as at 30 June 2020), of infrastructural assets which can be summarised as follows. Details of the assets are contained in each individual Activity / Asset Management Plans.

Asset summary Activity Asset description Water supply • 6 water treatment plants • 17 reservoirs • 191km of waterpipes Wastewater • 6 wastewater treatment plants • 104km of pipelines • 18 wastewater pump stations Stormwater • 50km piped drains • 32km watercourse Land transport • 848km unsealed roads • 496km sealed roads • 1,548 streetlights • 341 bridges and larger culverts • 286 retaining walls • 70km footpaths • 369km cycleways Sources: Three waters asset valuation Veolia (1 July 2020) and GHD Transport Revaluation report 2019/20 (excluding land value)

SIGNIFICANT INFRASTRUCTURE ISSUES Significant infrastructure issues for the activities and principal options for managing these issues are detailed in the following sections for core infrastructure.

WATER SUPPLY

BACKGROUND The water supply activity provides safe and secure drinking water to the communities in the District in an environmentally sustainable manner. We are responsible for the provision and management of six water supply schemes at National Park, Ohakune. Ohura, Owhango, Raetihi and Taumarunui. The water supply network includes six water treatment plants, 16 water storage reservoirs, four pumping stations and nearly 200km of water reticulation mains. The water assets had a gross replacement cost of $72.1 million (as at 1 July 2020).

Council also purchases potable drinking water for the Waiouru Township from the New Zealand Defence Force. The New Zealand Defence Force supplies the bulk water to Waiouru and Council distributes it to the end customers.

Council works closely with District Health Boards in relation to public health of our community, particularly drinking water but also the wellbeing of our community. Drinking Water Assessors will be moving to Taumata Arowai with the new legislation. Ruapehu District is split between two District Health Boards, Whanganui in the southern half and Waikato in the northern half. This can make strategic relationships and decision making more complex to manage dealing with two agencies with sometimes different approaches.

STRATEGIC WATER SUPPLY CHALLENGES PROVIDING FOR GROWTH AND MEETING LEVELS OF SERVICE MEETING DRINKING WATER STANDARDS Council is continually working towards improving its water supply schemes and their ability to comply with the Drinking Water Standards to ensure that we provide safe drinking water to our customers.

172 It is a challenge for the treatment plants to comply with the Drinking Water Standards for protozoan compliance criteria. Ohakune, Ohura, National Park and Owhango Treatment Plants currently do not comply. Raetihi Water Treatment Plant was upgraded in 2018 and is now fully compliant. Ohakune Treatment Plant is being upgraded in the next two years. The Matapuna Water Treatment Plant (for Taumarunui) has achieved protozoal compliance for the first time in 2019/20. There have been historical issues around water quality compliance and the provision of data by the minute to meet the requirement.

The remaining plants (ie Ohura, National Park and Owhango) require upgrades as detailed in this strategy. Council will continue to seek external funding to accelerate the upgrade programme to provide safe drinking water for residents and visitors.

SERVICING GROWTH AREAS Peak population is the key tool to plan for core infrastructure including water supply. Peak population is used to plan for the absolute peak population the district might experience on any given day. For water supply planning purposes, peak population needs to be considered at township level as it will differ throughout the district.

There is significant growth occurring in Ohakune and the provision of core infrastructure is required to enable suitable housing to support the influx of people into the district. The timing and investment in core infrastructure including water supply needs to be planned to support this growth.

Ohakune and National Park Treatment Plants are nearing capacity. Ohakune is scheduled for upgrade in the next two years which will address Drinking Water Standards compliance issues as well as providing for additional capacity.

Strategic planning is important to guide long term infrastructure planning. A key planning initiative is undertaking modelling for the Ohakune township for water supply and wastewater to understand and plan for the population growth.

MANAGING RISK AND ASSET PERFORMANCE NETWORK RESILIENCE

Resilience is important for all water operators and essential for remote communities like Ruapehu. Infrastructure resilience is tested further in Ruapehu as it is influenced by the Mountain and subject to intense weather events. It is also exposed to a variety of natural hazards including earthquakes and volcanic eruptions.

A key focus is strengthening our infrastructural resilience as there are six treatment plants at significant distances from one another to serve our communities. It also does not provide for economies of scale. Joining plants may provide economies of scale but they reduce the resilience in having a second supply. In the future it is expected that ribbon development will see the township of Ohakune and Raetihi join with enough ratepayers to make it cost effective to develop a watermain between the townships.

Most of the District’s water supply network is plastic (newer pipe material) and asbestos concrete pipe material (53% and 33% respectively). Asbestos concrete pipe material is a brittle material and known to break frequently causing outages. To mitigate this vulnerability with our water supply network, we have implemented an active watermain renewal programme. This has resulted in the renewal of approximately 6.2% of the watermains by length since 2010, mainly to replace asbestos concrete pipe material. These renewals have taken place primarily in Ohakune, Ohura, Raetihi and Taumarunui.

PREPARING FOR CLIMATE CHANGE We are preparing for the impacts of climate change on the water supply activity as we are already experiencing impacts such as prolonged droughts and intense storm events.

Increasing extreme weather patterns with storms of increasing intensity and frequency will also increase the challenges of making potable water from highly turbid waters. Chlorination at all water treatment plants provides for protection against bacteria (E.coli) and ensures network disinfection residual.

173 Inversely increasing dry periods (droughts) are reducing the recharge zones in the river so they have less flow which can extend for longer periods of time. This drives demand from connections across the district.

Climate change may also impact the catchments used for drinking water with more intense storms predicted. This will likely be a focus for Taumata Arowai in relation to providing safe and secure drinking water. The potential reduction in water intakes may impact our existing treatment plant capacity and management of the reticulation service.

ASSET CONDITION AND PERFORMANCE Most of the network (62.4%) was constructed after 1980, with a further 29.8% constructed during the period 1960 to 1969 period, as shown in the figure below. Most pipeline assets are about one third through their asset lives.

Water supply pipes by age

Source: Asset Finda (as at 30 June 2019) The overall condition of the water supply assets is summarised in the table below by major asset class and township (by Veolia as at 2020). This shows that most asset classes and townships have been assessed between good and moderate.

Asset condition by major asset class and township MAJOR ASSET CLASS CONDITION GRADING WATER SUPPLY CONDITION SYSTEM GRADING Intake Moderate National Park Good Water treatment plant Good Ohakune Good Treated water storage Good Ohura Moderate Water pump stations Moderate Owhango Moderate Watermains Moderate Raetihi Good Hydrants Good Taumarunui Moderate Valves Good Waiouru Good Source: Veolia (August 2020) Asset condition and performance monitoring is undertaken to identify under-performing assets and those about to fail. Ongoing asset capacity / performance assessment and asset condition assessment is undertaken by Council’s Facilities Management Contractor (Veolia) on a rolling basis township by township (this applies to wastewater and stormwater as well).

The asset assessments cover critical and non-critical assets at the same time as undertaken at township level. This is the most practical method (this applies to wastewater and stormwater as well).

174 Asset performance of Council’s water supply network is assessed in terms of water leakage and water quality as follows: • Water leakage - Water loss can happen for a range of reasons, including leaks and breaks in the network and this results in Council treating more water than is needed. Council assesses its water losses through targeted surveys. Water loss surveys were completed in Ohakune and Raetihi in 2019 using night usage surveys. Night-time flow monitoring was undertaken at Taumarunui in 2019 as part of the network modelling project. Areas of high usage were identified and targeted for further investigation. Council intends to move to using Infrastructure Leakage Index as a water loss performance indicator which is consistent with industry best practice. It has been used for the Taumarunui water loss survey to identify the leaky zones. Preliminary results for the largest part of town were assessed with an Infrastructure Leakage Index of 1.2. This index indicates further loss reduction may be uneconomic unless there are shortages, careful analysis needed to identify cost-effective improvement.

• Water quality - Council has a suite of plans and processes to provide assurance that it is providing safe drinking water. These include Water Safety Plans, operating procedures, and operations and maintenance manuals for the treatment plants. Council’s water quality is measured monthly against the mandatory performance measures and reported in the Annual Report. Two plants (Raetihi and Taumarunui) are now fully compliant with the New Zealand Drinking Water Standards and the remaining plants require upgrades as noted above.

We have defined our critical water supply assets that are significantly important to our community. These are classified as critical, low criticality and non-critical. These include items such as raw water pipelines, trunk mains and control equipment. The categorisation of critical water supply assets at component level has been completed as part of the condition assessments but not recorded in Council’s asset management system (AssetFinda). We will address this as an improvement action in the next three years (this applies to wastewater and stormwater as well).

175 Significant issues for the water supply activity and principal options for managing these issues are detailed in the following table. The option preferred as the most likely scenario has been identified. Indicative cost estimates are provided for evaluating wide range of options only and not part of Long Term Plan budgets (this applies to wastewater, stormwater and land transport). Significant issues and options for water supply

Significant water Options for managing Most likely scenario for Years 11- Years 21- Risk Implications of the options Years 1-10 supply issue the issue managing the issue 20 30 (H/M/L) • Future water supply costs

may be unaffordable for    District’s small population Current Current Current • Not eligible for funding budgets are budgets are budgets are 1. Continue with water through Government’s known known known services remaining in three waters reform H ($50.8m for ($60.9m for ($83m for house programme capital capital capital • Government may force projects for 10 projects for projects for amalgamation for councils years inflated) 10 years 10 years that do not collaborate Implications of the inflated) inflated) regionally Government’s • Costly to set up water Three Waters Council Controlled   Reforms and  Organisation but will be Higher level Higher level changes to Higher level eligible for Central estimates estimates legislation are estimates from Government funding Option 2 is preferred as from from likely to result in industry of • A dedicated water Council the most likely scenario – industry of industry of higher standards reduction in Controlled Organisation Continue with regional reduction in reduction in for water treatment capital 2. Continue to with no other competing collaboration on the capital capital and compliance programme collaborate with the priorities will be expected preferred three waters programme programme costs, and with other councils in the to better prioritise management option with with changes to Water aggregation Region to identify a investment decisions Decision required by aggregation aggregation Services Delivery (1.25% per H preferred three waters across the region leading Council – Decision on (1.25% per (1.25% per Models. year management option to better environmental participating in reforms and year year indicative (regional aggregation and community outcomes preparation for the formation indicative indicative estimated model) than the Councils can of water services entities estimated estimated cost $570k individually achieve expected from late 2021 to cost $590k cost $590k reduction in • 2023 (legislation is still being reduction in reduction in Potentially loss of capital passed) capital capital community involvement in projects projects projects water decisions over10 years • over 10 over 10 Council needs to opt into in real terms) reform programme to be years in real years in real eligible for funding terms) terms)

176 Significant water Options for managing Most likely scenario for Years 11- Years 21- Risk Implications of the options Years 1-10 supply issue the issue managing the issue 20 30 (H/M/L) • Regional collaboration is already underway with Regional Three Waters Services Delivery Study on preferred management option 3. Maintain a watching • Central Government may brief on the force amalgamation for    Government’s Three councils that do not Current Current Current Waters Reform aggregate regionally budgets are budgets are budgets are Programme and • known known Implications from water known respond as required ($60.9m for ($83m for H reforms on service ($50.8m for to ensure Council’s capital capital delivery including the capital best interest are projects for projects for impact of Taumata Arowai projects for 10 considered 10 years 10 years and changes to legislation years inflated) particularly for a small are still unfolding and inflated) inflated) rural district council happening at a rapid pace 1. Continue operating • Public health risk for the the plants that do not community with being    fully comply with the provided potentially Current Current Current Drinking Water unsafe drinking water budgets are budgets are budgets are Challenge for Standards • Unfavourable review from known known known ($2.1m Council’s treatment Taumata Arowai and ($2.2m ($2.2m H opex per plants to comply other Government opex per opex per annum for with the Drinking agencies annum for annum for operating Water Standards • operating operating Water management may networks) for protozoan be removed from Council networks) networks) compliance by Central Government criteria. Ohakune, 2. Upgrade the plants to  • Public health risk for the Ohura, National fully meet the Drinking Requires community in the short to - Park and Owhango Water Standards over additional LTP medium term as upgrades (upgrades Treatment Plants long period that is funding are completed expected to currently do not affordable for our (estimated at - • Takes time to implement be H comply. community $5.9m plant • completed Taumata Arowai may not upgrades at in first 10 be satisfied with the time National Park, years) to implement the upgrade Ohura and programme Owhango)

177 Significant water Options for managing Most likely scenario for Years 11- Years 21- Risk Implications of the options Years 1-10 supply issue the issue managing the issue 20 30 (H/M/L) 3. Seek external Option 3 is preferred as Government funding the most likely scenario –  to accelerate the Seek external Government Requires capital upgrade funding to accelerate the seeking programmes • Full compliance will be capital upgrade programmes external achieved in shortened to ensure full achievement funding timeframe with Drinking Water ($2.8m of - - M • Will require additional Standards capital grant resources to deliver Decision required by funding, and programme Council – Application made $300k of already, decision required if operational not successful to proceed as grant funding part of the 2021 Long Term in year 1 only) Plan adoption 1. Allocate funding and Option 1 is preferred as resourcing to secure the most likely scenario - new resource Allocate funding and consents and resourcing to secure new monitoring of resource consents and conditions. Start early monitoring of conditions, and    discussions with the • Dependent on early start early discussions with May require Water allocation May require May require Regional Council to engagement with the Regional Council. additional LTP reviews may mean additional additional understand significant stakeholders and iwi to be Decision required by funding that environmental LTP funding LTP funding changes so we can successful Council – Underway with (estimated at protection will have (indicative (indicative M plan and budget for • Additional operational and Regional Council at township $700k for priority over water estimated estimated intakes for public this capital expenditure may level. Decision required National Park, cost at cost at before expiration of current Ohakune, drinking water be required to meet $300k over $300k over consents: Ohura and purposes. The consent conditions 10 years) 10 years) potential reduction -National Park: Dec 2026 Taumarunui) in water intakes -Ohakune: Sept 2025 may impact our -Ohura: Nov 2021 existing treatment -Owhango: - Lodged plant capacity. - Raetihi: July 2039 - Taumarunui: Lodged 2. Provide justification to • Takes time to plan and    the Regional Council consult including cultural Current Current Current for catchment issues budgets are budgets are budgets are H allocation for public • May not be successful known (about known known with the Regional Council $250k pa for (about (about

178 Significant water Options for managing Most likely scenario for Years 11- Years 21- Risk Implications of the options Years 1-10 supply issue the issue managing the issue 20 30 (H/M/L) drinking water Council staff $250k pa $250k pa purposes time to for Council for Council respond) staff time to staff time to respond) respond) 3. Reduce demand • Community and  through enhanced stakeholders dissatisfied Low cost from   water loss with Council’s existing Low cost Low cost programme. Enforce management of water resources and (about (about water restrictions sources budgets $100k pa $100k pa when the river flows • District may not be (about $100k for water for water at set locations attractive to businesses pa for water loss loss approach the without certainty with loss programme) programme) minimum flow service provision all year programme) thresholds round 1. Continue with ad hoc • Development occurs ad planning approach for hoc water provision in • Bulk infrastructure is not growth areas, planned to meet current  particularly Ohakune or future demand, or Low cost from   sequenced existing Low cost Low cost • Does not support resources and (about (about Ability of water Council’s Social and budget (about $150k pa $150k pa H supplies to meet Affordable Housing $150k pa for for Council for Council demands of visitor project Council staff staff time to staff time to numbers coupled • District is unattractive for time to respond) respond) with future growth developers as Council respond) in main townships. difficult to work with National Park • Not supported by Village and Council as an ongoing Ohakune are option impacted by peak 2. Undertake hydraulic Options 2 and 3 are • Bulk infrastructure is tourist demand. modelling of water preferred. Option 2 is planned holistically and supply for Ohakune preferred as the most enables growth in  township to likely scenario (medium to townships Moderate cost understand and plan long term) – Undertake M • Based on realistic for study for the rapid hydraulic modelling of water forecast of development, (about $100k) population growth supply for Ohakune township where it will likely occur to understand and plan for and when the rapid population growth

179 Significant water Options for managing Most likely scenario for Years 11- Years 21- Risk Implications of the options Years 1-10 supply issue the issue managing the issue 20 30 (H/M/L) • Supports Council’s Decision required by economic stimulus Council – Study is programme to offset the underway. This option is impact of COVID-19 as shown for completeness and well as the Social and therefore no formal Council Affordable Housing decision is required. project 3. Seek Government • Softens any water rates funding for the increases for our Option 3 is preferred as  significant costs of community   the most likely scenario – Requires upgrades to meet • Will require additional (about (about Seek Government funding seeking increased demand resources to deliver $2.3m $3.2m for the significant costs of external more affordable to the programme growth growth upgrades to meet increased funding (about local community • Can be undertaken with capex capex M demand. $2m growth upgrades to meet projects in projects in Decision required by capex projects compliance requirements total inflated total inflated Council – Budget approved in total inflated • over ten over ten Have to compete for as part of the 2021 Long over ten years) years) funding allocation with Term Plan adoption. years) other local authorities facing similar challenges

180 WASTEWATER

BACKGROUND The wastewater activity provides efficient and safe wastewater collection and disposal in the District in an effective and environmentally acceptable manner. A safe and efficient wastewater network is essential as the basis for maintaining public health in our communities and protecting the environment.

Council manages a wastewater network which includes six wastewater treatment plants, 18 pump stations, 104 km of pipes, 1,434 manholes, and 4,778 rateable properties connected. The wastewater assets had a gross replacement cost of $53.1 million (as at 1 July 2020). Council collects wastewater from the Waiouru township customers and pays New Zealand Defence Force for treatment and disposal.

Resource consents are required for discharging into water bodies and onto planted forestry and are issued by Horizons Regional Council. The main purpose of a consent is environmental protection and driven by the Resource Management Act. These consents are subject to requirements that restrict the volume of water that can be discharged and stipulate the water quality parameters the discharged water must meet.

STRATEGIC WASTEWATER CHALLENGES CHANGES TO LEVELS OF SERVICE There are significant wastewater challenges driven by higher future consent requirements, environmental protection, cultural expectations for suitable treatment processes, Government’s freshwater reform programme coupled with growth. This will require significant investment as outlined in the Strategic Issues Section (at district wide level).

The priority for Council has been working towards improving its water supply schemes and their ability to comply with the Drinking Water Standards, post the Havelock North gastro water contamination outbreak. This dominates the capital works programme in the first ten years of this strategy.

We need to identify long term sustainable solutions that are affordable for our community. We will continue to undertake feasibility studies and gather technical information to inform our decision making recognising that wastewater challenges are complex. It can be difficult to schedule treatment plant upgrades as it takes time to investigate and build as well as ageing with stakeholders on sustainable solutions. We have adopted a collaborative approach with iwi, Regional Council and stakeholder groups noting that co-management is a longer process.

It is likely that Council will receive an increase in the number of non-compliances issued by the Regional Council with the new monitoring and stringent enforcement of the existing resource consents and until new / upgraded plants are completed. We will adopt short term measures to mitigate this risk and ensure maximum utilisation of the existing plants and processes where practical.

MANAGING RISK AND ASSET PERFORMANCE NETWORK RESILIENCE A key focus is strengthening our infrastructural resilience as there are six treatment plants at significant distances from one another to serve our communities (similar challenge as for the water supply activity). The Waimarino networks (Ohakune and Raetihi) townships growth may see network collection systems join which will make a single treatment system viable in the future. It will also address the long-standing issues at the Ohakune Wastewater Treatment Plant (related to ammonia and suspended solids).

Climate change directly impacts the wastewater activity. Council’s future action in response to climate change and strengthen resilience for the activity includes building any centralised plants out of flood plains.

181 FUTURE CHALLENGES CHANGING TECHNOLOGY Council currently utilises the lowest cost technology to treat wastewater, largely using gravity to collect the wastewater from the community and delivering it to the treatment plant. The existing plants utilise low carbon treatment technologies with enhanced oxidation lagoons systems. The step change to treat nutrients to deliver nutrient removal will involve high carbon technology. Council will consider the carbon footprint with any new / upgraded treatment plants in its decision making.

SLUDGE MANAGEMENT Future treatment plant upgrades will generate greater volumes of sludge which will require increased management, handling and disposal processes. While this is not currently a major pressure, it will be in the future and needs to be considered across plants. The new / upgraded plants will have large carbon footprints and will generate greater volumes of sludge. This will potentially generate increased greenhouse gases as well as ongoing operational costs.

ASSET CONDITION AND PERFORMANCE Most of the district’s wastewater network is plastic (newer pipe material) and asbestos concrete pipe material (at 41% each). Most of the network (69%) was installed after 1970, as shown in the figure below. Wastewater pipes by age

Source: AssetFinda (as at 30 June 2019)

The overall condition of the wastewater assets is summarised in the table below by major asset class and township (by Veolia as at 2020). This shows that most asset classes and townships have been assessed between good and moderate.

182 Asset condition by township MAJOR ASSET CLASS CONDITION WASTEWATER CONDITION GRADING SYSTEM GRADING Wastewater mains Good National Park Good Manholes Good Ohakune Good Wastewater pump stations Moderate Pipiriki Good Wastewater treatment Moderate Raetihi Good plants Rangataua Good Taumarunui Good Waiouru Good Source: Veolia (August 2020) We have defined our critical wastewater assets that are significantly important to our community. These are classified as critical, low criticality and non-critical. These include items such as raw wastewater pipelines, trunk mains and control equipment.

Asset performance of Council’s wastewater network is assessed in terms of overflows and inflow and infiltration as follows: • Dry weather overflows. A dry weather overflow is an uncontrolled wastewater discharge that is not associated with a rain event. All pump stations are connected to a monitoring system so we can monitor and report failures. This helps us to effectively mitigate dry weather overflows from entering the environment and for reporting to the Regional Council. Dry weather overflows are reported on as a mandatory performance measure and to Horizons Regional Council. Blockage incidences occur from time to time but our asset performance for dry weather overflow events meet the industry accepted benchmarks. • Wet weather overflows. These incidents occur periodically, mainly during significant rainfall events at weak points in the system such as pump stations and low lying areas where gully traps are inundated with floodwaters. A wet weather overflow has limited environmental effect as it is diluted. No overflows were recorded during the 2019/20 period due to the Raetihi network capacity being exceeded. This reduction in overflows indicates that the relining of the poor condition mains has been effective in reducing infiltration in the network. • Inflow and infiltration. We know operationally that some of our catchments are leaky. This is the term used to describe groundwater and stormwater entering into dedicated wastewater system resulting in the system becoming overloaded and overflows occurring. These increases occur in Raetihi, some Ohakune wastewater networks, and discrete catchments within the Taumarunui wastewater network. Significant wet weather flow increases at Raetihi Wastewater Treatment Plant resulted in regular wet weather flow discharge exceedance. Surveys of the wastewater network and subsequent relining of poor condition mains has now been completed in the last few years throughout the township and has significantly reduced the wet weather inflows to the treatment plant.

183 Significant issues for the wastewater activity and principal options for managing these issues are detailed in the following table. The option preferred as the most likely scenario has been identified.

Significant issues and options for wastewater

Most likely Significant wastewater Options for managing the Years 11- Years 21- Risk Implications of the options scenario for Years 1-10 issue issue 20 30 (H/M/L) managing the issue

• Future wastewater costs may be   unaffordable for District’s small  Current Current population Current budgets are budgets are 1. Continue with water • Not eligible for funding through budgets are known known services remaining in Government’s three waters reform known ($26.9m H ($33.2m for ($45.2m for house programme for capital capital capital • projects for 10 Government may force amalgamation for projects for projects for years inflated) councils that do not collaborate 10 years 10 years regionally inflated) inflated) Option 2 is   Implications of the preferred as the Higher level Higher level Government’s Three • Costly to set up water Council Controlled most likely  estimates estimates Waters Reforms including Organisation but will be eligible for Central Government funding scenario – Continue Higher level from from strengthening the with regional estimates from industry of industry of • A dedicated water Council Controlled stewardship of wastewater collaboration on the industry of reduction in reduction in Organisation with no other competing and stormwater with preferred three reduction in capital capital 2. Continue to priorities will be expected to better regional councils remaining waters management capital programme programme collaborate with the prioritise investment decisions across the primary regulators, and option. programme with with changes to Water Services other councils in the region leading to better environmental Decision required with aggregation aggregation Delivery Models. Region to identify a and community outcomes than the by Council – aggregation (1.25% per (1.25% per H preferred three waters Councils can individually achieve Taumata Arowai will not Decision on (1.25% per year year start monitoring the management option • Potentially loss of community participating in year indicative indicative indicative wastewater and stormwater (regional aggregation involvement in water decisions reforms and estimated cost estimated estimated functions until 2023. The model) • Council needs to opt into reform preparation for the $300k cost $310k cost $310k initial focus will be weighted programme to be eligible for funding formation of water reduction in reduction in reduction in • towards wastewater. Regional collaboration is already services entities capital projects capital capital underway with Regional Three Waters expected from late over10 years in projects projects Services Delivery Study on preferred 2021 to 2023 real terms) over10 over10 management option (legislation is still years in years in being passed) real terms) real terms) 3. Maintain a watching • Central government may force    brief on the amalgamation for councils that do not Current Current Current Government’s Three aggregate regionally budgets are budgets are budgets are H Waters Reform • known known Implications from water reforms on known ($26.9m Programme and ($33.2m for ($45.2m for service delivery including the impact of for capital respond as required to Taumata Arowai and changes to capital capital

184 Most likely Significant wastewater Options for managing the Years 11- Years 21- Risk Implications of the options scenario for Years 1-10 issue issue 20 30 (H/M/L) managing the issue ensure Council’s best legislation are still unfolding and projects for 10 projects for projects for interest are considered happening at a rapid pace years inflated) 10 years 10 years particularly for a small inflated) inflated) rural district council 1. Continue to meet   existing resource  Current Current • Meets current minimum resource consent conditions to Current budgets are budgets are consent requirements keep within consented budgets are known (part known (part • May not result in substantial positive water quality limits to known (part of of of environmental improvements minimise the impact of wastewater wastewater wastewater M • Stakeholders including iwi and the the treated effluent operational operational operational discharged from the Regional Council unlikely to support this activity budget activity activity ‐ existing wastewater approach for long term resource consent about $150k budget budget treatment plants condition on the current terms pa) about about $150k pa) $150k pa) 2. Explore alternative Option 2 is Cultural concerns for options and stage preferred as the suitable wastewater appropriate solutions most likely treatment processes. The overtime to ensure our scenario – Explore fundamental position is that capital projects are alternative options  the direct discharge of   culturally appropriate • Better alignment with Māori values and and stage Solution still to wastewater to surface Upgrade Upgrade and supported by our community aspirations appropriate solutions be agreed and water is culturally costs may costs may community. Find the • Improves freshwater quality overtime. upgrade costs unacceptable. be be optimal solution for the • Takes time to find appropriate solutions Decision required may be significant significant balance between • May not be practical at some locations by Council – The significant (indicative (indicative H treatment provision, • budget for new plant (about $2.7m Significant operational and capital cost cost movement through servicing Ohakune for new plant expenditure may be required estimate estimate Papatuanuku and and Raetihi will be servicing • Requires greater stakeholder $10m to $10m to discharge in a District adopted as part of Ohakune and management to gain acceptable on $15m over $15m over with extreme weather the 2021 Long Term Raetihi in alternative options 10 years) 10 years) events, geological Plan. Formal project 2030/31) constraints for approval will be discharge to land. required by Council in 2027/28 to 2028/29. 1. Meet new resource    Significant challenges with • The upgrades may not have substantial consent conditions on Consent Upgrade Upgrade the future wastewater positive environmental improvements a plant by plant basis conditions still costs may costs may treatment plant upgrades and be unaffordable for the district given need to be be be as consents expire and the limited funds available agreed and significant significant costly to address for a • Meets minimum resource consent cost impact (indicative (indicative small rural district council. requirements (about $2.7m cost cost Interrelated issues to • Stakeholders including iwi unlikely to for new plant estimate estimate consider include growth, support this approach servicing $15m to $15m to

185 Most likely Significant wastewater Options for managing the Years 11- Years 21- Risk Implications of the options scenario for Years 1-10 issue issue 20 30 (H/M/L) managing the issue Horizon Regional Council’s Ohakune and $20m over $20m over One Plan, National Policy Raetihi starting 10 years) 10 years) Statement for Freshwater in 2030/31) Management 2020, and a higher degree of treatment required for future resource consents. 2. Identify options in Option 2 is consultation with iwi, preferred as the Regional Council and most likely stakeholder groups to scenario (medium identify long term to long term) – sustainable solutions Identify options in that are affordable for consultation with iwi, our community Regional Council  • Addresses issues holistically and stakeholder Moderate costs • Requires greater stakeholder groups to identify for studies and management to gain acceptance on new long term supporting and innovative approach sustainable technical H • solutions. Sustainable investment that addresses information the four well beings Decision required (indicative • by Council –This is Maybe greater impact on the cost estimate current practice and environment until investment is made $0.5m to $1m) will continue but takes longer. This option is shown for completeness and no formal Council decision is required for this option (planning stage). 3. Seek external Option 3 is  government funding • Softens any wastewater rates increases preferred as the for the significant Requires for our community most likely upgrades such as the scenario – Seek seeking • Will require additional resources to new single treatment Government funding external deliver programme plant to service for the significant funding (about • Can be undertaken with upgrades to M Ohakune and Raetihi costs of upgrades to $2.7m for new meet compliance requirements (to replace two existing meet increased plant servicing • plants) Have to complete for funding allocation demand Ohakune and with other local authorities facing similar Decision required Raetihi starting challenges by Council – The in 2030/31) application does not

186 Most likely Significant wastewater Options for managing the Years 11- Years 21- Risk Implications of the options scenario for Years 1-10 issue issue 20 30 (H/M/L) managing the issue require formal Council approval. 1. Continue with lagoon-    based technology for Costs are Costs are • Operational costs are known Costs are treatment at existing known (part known (part • Low carbon treatment technology known (part of plants of of • Technology may become obsolete and wastewater wastewater wastewater M activity not supported activity activity • operational May not be suitable to meet future operational operational budget at resource consent requirements budget at budget at $1.3m pa) $1.3m pa) $1.3m pa) 2. Stage the   implementation of Budget Budget  plant upgrades over • Addresses issues holistically impacts impacts Budget impacts longer period while • Potentially degraded environment as (indicative (indicative (indicative meeting the various takes too long to implement cost cost H cost estimate requirements • estimate estimate Timeframe may not be acceptable to $1m to $2m $5m to $8m $5m to $8m stakeholders over 10 years) over 10 over 10 Treatment plant upgrades years) years) and discharge methods will 3. Upgrade treatment Option 3 is require step change in plants before the preferred as the technology to meet the existing consents higher environmental most likely expire to meet the Upgrade requirements and cultural scenario - more stringent treatment plants concerns requirements of One before the existing   Plan, cultural concerns consents expire to  Budget Budget and stakeholder • May be unaffordable for the District given meet the more Budget impacts impacts impacts groups, and the limited funds available including stringent may be may be may be community higher operational costs requirements significant significant significant expectations • Requires higher carbon technology Decision required (about $2.7m (indicative (indicative H • Better alignment with Māori values and by Council – The for new plant cost cost community aspirations budget for new plant servicing estimate estimate • servicing Ohakune Ohakune and Does not support reducing the District’s $15m to $15m to and Raetihi will be Raetihi starting carbon footprint $20m over $20m over adopted as part of in 2030/31) 10 years 10 years n the 2021 Long Term Plan. Formal project approvals will be required by Council for each plant upgrade.

187 STORMWATER

BACKGROUND The stormwater and flood protection activity provides a safe environment which protects the communities in the District in an environmentally sustainable manner. A developed network of pipes, culverts to drains, watercourses, provides a safe and efficient means of collecting and conducting stormwater through townships.

Council manages a stormwater and flood protection (stormwater) network across 11 townships which includes stormwater reticulation mains (50 km), public drains, watercourses (30 km), open drains and associated culverts, manholes and sumps. The assets had a gross replacement cost of $29.5 million (as at 1 July 2020).

STRATEGIC STORMWATER CHALLENGES PROVIDING FOR GROWTH AND CHANGES TO LEVELS OF SERVICE RESOURCE CONSENTS Historically Council has not applied for resource consents to discharge stormwater from its townships. The towns are largely built in high alpine swamp plains with limited drainage. There are numerous drains and streams through these townships with numerous short drainage pipes to the streams. Global consents will be required for these communities across Ruapehu District.

We know that there will be higher requirements than we currently have including treatment and more comprehensive monitoring. A significant amount of work will be required to prepare the consent application and supporting technical information. Horizon Regional Council’s One Plan has stringent conditions regarding discharges of water to the receiving environment as well as the considerations of the National Policy Statement for Freshwater Management 2020.

Stormwater treatment will also be required with global consents. This will require us to be more proactive in stormwater quality management than our current practices. We need to develop evidence- based strategy and programmes to be more proactive in stormwater quality.

SERVICING GROWTH AREAS Although our usually resident population is set to steadily increase, stormwater demand is linked indirectly to population growth with the creation of impervious or paved surfaces. This is not a linear relationship. Demand for stormwater infrastructure is directly related to the creation of imperviousness and rainfall.

There is significant growth occurring in Ohakune and the provision of core infrastructure is required to enable suitable housing to support the influx of people into the District. The timing and investment in core infrastructure including stormwater needs to be planned to support this growth.

We do know that the existing stormwater systems at the bottom of catchments cannot cope with the effects of growth in townships. These stormwater assets are undersized, and any additional paved surfaces may result in localised flooding. In particular, there is concern that future development in Ohakune may be constrained by the existing stormwater system. Ohakune is experiencing significant population growth and stormwater is a constraint for enabling future development in the township. We need to develop a Stormwater Master Plan as an overarching framework to guide our long term planning and capital works programme.

MANAGING RISK AND ASSET PERFORMANCE PREPARING FOR CLIMATE CHANGE We are preparing for the impacts of climate change for the District for the next 20 to 30 years on the infrastructure assets as we are already experiencing impacts such as flooding. Ruapehu District is influenced by the Mountain and subject to intense weather events which may be short with a peak within two hours.

188 The National Climate Change Risk Assessment (August 2020) prepared by the Ministry for the environment identified New Zealand’s ten most significant climate change risks based on consequence and urgency. The other most significant risks included risks to wastewater and stormwater systems due to extreme weather events and ongoing sea level rise. A key focus is strengthening our infrastructure resilience, particularly for our townships with more built infrastructure as Raetihi, Ohakune and Taumarunui (less impact for National Park village).

Stormwater infrastructure may not be able to cope long term, particularly with the intense rainfall predicted. Global climate change is likely to bring more intensive rainfall events with longer dry periods between them and annual rainfall volume is also expected to increase. Changes in rainfall intensity and frequency will have an impact on the performance of the stormwater network.

We will continue to monitor trends in the performance of our stormwater network, particularly flooding risk to residential properties, with more intense and frequent storms. New stormwater infrastructure is designed to provide for future capacity and changes in rainfall intensity. We design our infrastructure to take into account climate change projections and the risk of climate change weather related events. At this stage, the financial implications of adapting to the effects of climate change are uncertain for the stormwater activity and they will be refined in subsequent strategies and plans as investigations are progressed.

ASSET CONDITION AND PERFORMANCE Most of the stormwater piped network (86%) is concrete material. In terms of age, 60% of the network was installed after 1980 with a further 30% constructed in the period 1950 to 1969 as shown in the figure below. Stormwater pipes by age

Source: AssetFinda (as at 30 June 2019) The overall condition of the stormwater assets is summarised in the table below by township (by Veolia as at 2020). This shows that most townships have been assessed between good and moderate. The overall asset condition of Council’s stormwater asset classes has been assessed in good condition.

189 Asset condition by township STORMWATER SYSTEM ASSET CONSITION GRADING National Park Good Ohakune Moderate Ohura Good Owhango Moderate Raetihi Good Rangataua Good Raurimu Moderate Taumarunui Moderate Waiouru Good

Asset performance of Council’s stormwater network is assessed in terms of capacity constraints (flood protection) and stormwater quality. Overall, the townships asset performance has been assessed between good (or 2) and moderate (or 3) (by Veolia as at 2020).

There has been historical flooding in Raetihi, Ohakune and Taumarunui. Council works with Horizon Regional Council on flood management schemes including flood modelling. There were no flood events reported or habitable floors flooded recorded in 2019/20 as a mandatory performance measure.

We have defined our critical stormwater assets that are significantly important to our community. These are classified as critical, low criticality and non-critical. These include items such as the Miro Street channel and most channels passing through urban Ohakune, and internal drainage release through the stopbanks and culverts through the stopbanks in Taumarunui.

190 Significant issues for the stormwater activity and principal options for managing these issues are detailed in the following table. The option preferred as the most likely scenario has been identified. Significant issues and options for stormwater

Most likely Significant stormwater Options for managing the scenario for Risk Implications of the options Years 1-10 Years 11-20 Years 21-30 issue issue managing the (H/M/L) issue Implications of the 1. Continue with water • Future stormwater costs    H Government’s Three services remaining in may be unaffordable for Current Current Current Waters Reforms house. Stormwater District’s small population budgets are budgets are budgets are including strengthening activity remains mainly • Not eligible for funding known ($6.1m known ($7.1m known ($9.7m the stewardship of reactive service. through Government’s for capital for capital for capital wastewater and three waters reform projects for projects for 10 projects for 10 stormwater with regional programme 10 years years inflated) years inflated) councils remaining • Government may force inflated) primary regulators, and amalgamation for councils changes to Water that do not collaborate Services Delivery regionally Models. The initial 2. Continue to collaborate • Costly to set up water Option 2 is H focus for the three with the other councils in preferred as Council Controlled    waters reforms for the Region to identify a the most likely Organisation but will be Higher level Higher level Higher level stormwater will be preferred three waters scenario – eligible for Central estimates estimates estimates collecting performance management option Continue with Government funding from industry from industry from industry information as relatively (regional aggregation regional • A dedicated water Council of reduction in of reduction in of reduction in limited data currently model) collaboration on Controlled Organisation capital capital capital exists and promoting the preferred with no other competing programme programme programme best practice. three waters priorities will be expected with with with management to better prioritise aggregation aggregation aggregation option including investment decisions (1.25% per (1.25% per (1.25% per stormwater. across the region leading year year year Decision to better environmental indicative indicative indicative required by and community outcomes estimated estimated estimated Council – than the Councils can cost $70k cost $70k cost $70k Decision on individually achieve reduction in reduction in reduction in participating in • Potentially loss of capital capital capital reforms and community involvement in projects projects projects preparation for water decisions over10 years over10 years over10 years the formation of in real terms) in real terms) in real terms) water services entities

191 Most likely Significant stormwater Options for managing the scenario for Risk Implications of the options Years 1-10 Years 11-20 Years 21-30 issue issue managing the (H/M/L) issue • Council needs to opt into expected from reform programme to be late 2021 to eligible for funding 2023 (legislation • Regional collaboration is is still being already underway with passed) Regional Three Waters Services Delivery Study on preferred management option • Water cycle promoted with stormwater retained with water and wastewater with regional approach 3. Maintain a watching brief • Central government may    H on the Government’s force amalgamation for Current Current Current Three Waters Reform councils that do not budgets are budgets are budgets are Programme and respond aggregate regionally known ($6.1m known ($7.1m known ($9.7m as required to ensure • Implications from water for capital for capital for capital Council’s best interest are reforms on service projects for projects for 10 projects for 10 considered particularly for delivery including the 10 years years inflated) years inflated) a small rural district impact of Taumata Arowai inflated) council and changes to legislation are still unfolding and happening at a rapid pace Historic under 1. Continue with providing a • Will not achieve good    M investment in the mainly reactive service environmental outcomes Current Current Current stormwater system. with limited renewals • Deterioration of the budgets are budgets are budgets are network and ultimately known ($2.9m known ($3.3m known ($4.6m increased costs renewal renewal renewal • Not meeting the agreed projects in projects in projects in levels of service with total over 10 total over 10 total over 10 potentially local flooding years inflated) years inflated) years inflated) issues including habitable floors • Assets are deteriorated to a point that the

192 Most likely Significant stormwater Options for managing the scenario for Risk Implications of the options Years 1-10 Years 11-20 Years 21-30 issue issue managing the (H/M/L) issue community cannot afford to pay for • Investment burden is shifted to the next generation to pay for • Compromises safety and resilience • Constrains growth in township and District’s economy • Stakeholders including Regional Council, Taumata Arowai, local community and iwi dissatisfied with Council’s management of stormwater activity 2. Develop an investment • Achieves good Option 2 is    H programme that environmental outcomes preferred as Requires Requires Requires addresses asset but will take time the most likely additional additional additional performance issues • Will likely require higher scenario – LTP and LTP and LTP and including flooding and level of investment Develop of potentially potentially potentially meets the higher • Appropriate level of investment seeking seeking seeking standards expected by investment that maintains programme to external external external the NPS Freshwater stormwater assets in maintain the funding funding funding Management 2020 and perpetuity stormwater (indicative (indicative (indicative greater requirements for • Ensures assets are assets to cost cost cost stormwater quality functional and meets agreed level of estimate at estimate at estimate at management levels of service service and at a $5m+ over 10 $5m+ over 10 $5m+ over 10 • Bulk stormwater sustainable years) years) years) infrastructure is planned level and enables growth in Decision townships required by Council – Investment programme will be expected to

193 Most likely Significant stormwater Options for managing the scenario for Risk Implications of the options Years 1-10 Years 11-20 Years 21-30 issue issue managing the (H/M/L) issue be adopted by Council in the medium term (2026/27 to 2028/29). Growth in district, 1. Continue with ad hoc • Flooding is exacerbated    H particularly from planning approach for with additional impervious Low cost from Low cost Low cost subdivisions adding stormwater provision in areas into existing existing ($740k capital ($1m capital pressure on existing growth areas, particularly stormwater networks resources growth growth drainage systems at the Ohakune • Development occurs ad and budget projects over projects over bottom of catchments hoc ($650k capital 10 years 10 years that are already • Bulk infrastructure is not growth inflated) inflated) struggling to cope. planned to meet current projects over Servicing future capacity or future demand, or 10 years in Ohakune will be a sequenced inflated) challenge and • Does not support stormwater is a Council’s Social and constraint for Affordable Housing development. project • District is unattractive for developers as Council difficult to work with • Not supported by Council as an ongoing option

194 Most likely Significant stormwater Options for managing the scenario for Risk Implications of the options Years 1-10 Years 11-20 Years 21-30 issue issue managing the (H/M/L) issue 2. Develop a Stormwater • Bulk infrastructure is Option 2 is  M Master Plan as an planned holistically and preferred as Moderate overarching framework to enables growth in the most likely cost for study guide our long term townships scenario ($200k for planning and capital • Based on realistic (medium to study only) works programme forecast of development, long term) – where it will likely occur Develop and and when implement the • Supports Council’s Stormwater economic stimulus Master Plan to programme to offset the guide long term impact of COVID-19 as planning and well as the Social and the capital Affordable Housing works project programme Decision required by Council – Budget for study will be approved as part of the 2021 Long Term Plan process. The implications of the 1. Secure new resource • Consent requirements are    H National Policy consent and negotiate understood and budgeted Current Current Current Statement for with the Regional Council for budgets are budgets are budgets are Freshwater to ensure the conditions • May not achieve good known (about known (about known (about Management 2020 on are pragmatic and environmental outcomes $100k pa) $100k pa) $100k pa) Council’s water quality affordable for our • Some stakeholders improvements. This will community including iwi may not dictate the redrafting of support this pragmatic the Regional Policy approach Statement and will be • Preparation for consent the basis for assessing application and support our Comprehensive technical information will

195 Most likely Significant stormwater Options for managing the scenario for Risk Implications of the options Years 1-10 Years 11-20 Years 21-30 issue issue managing the (H/M/L) issue Stormwater Resource take time and may be Consent application and costly setting conditions.

2. Develop evidence based • Improves freshwater Option 2 is    H strategy and programmes quality preferred as Strategy Stormwater Stormwater to be more proactive in • Achieves good the most likely development quality capital quality capital stormwater quality than environmental outcomes scenario ‐ and data improvements improvements our current practices, but may not be immediate Develop consolidation indicative indicative aligned with the new • There may ongoing evidence based about $150k estimated estimated requirements operational costs that strategy and for external costs $300k costs $300k need to be considered as programmes to support; pa pa well as capital before be more Stormwater adopting this approach proactive in quality capital • Aligned to the new stormwater improvements requirements quality about $300k • Stormwater treatment Decision pa devices will need to be required by installed both proactively Council – and retrospectively Strategy will be • Demonstrates good expected to be stewardship to the adopted by Regional Council and Council in the Taumata Arowai medium term (2026/27).

196 LAND TRANSPORT

BACKGROUND Ruapehu is at the top of the Manawatū-Whanganui Region in the heart of the North Island and its transport system plays a key role in connecting the central and lower North Island. The land transport activity is to provide a multi-modal network that allows for the safe, reliable, efficient and effective movement of vehicles, cyclists and people. Roads are essential infrastructure for both community and economic development.

Council owns and manages land transport assets including 1,325km of roads (sealed and unsealed). 1,548 streetlights, 341 bridges and large culverts, 286 retaining walls, 70km of footpath and 16km of Council maintained cycleways. The assets had a gross replacement cost of $452 million (as at 1 July 2020).

STRATEGIC LAND TRANSPORT CHALLENGES

IMPACTS OF FORESTRY OF ROADING NETWORK Harvesting of the surrounding forests is having a significant adverse impact on both our unsealed and sealed roads. Weak pavement strength due to local geology of the district and pavement that have not been designed for this quantity and loading associated with logging haulage. Higher carrying loads of forestry trucks are accelerating pavement failures and consuming budget.

TRANSPORT LEGISLATION AND STRATEGY CHANGES There are significant changes to legislation that are either planned or underway that will impact the delivery of core infrastructure as outlined in the Infrastructure Overview Section. The key changes to legislation that impacts the land transport activity includes Road to Zero Strategy, Zero Carbon Act and the new Government Policy Statement on Land Transport (2021).

The One Network Framework is being developed nationally to provide a common language to reflect the role transport corridors play in the movement of people and freight across all land transport modes, the social spaces they provide and their role in providing access to adjacent land. This will ensure investment decisions are made consistently by local authorities rather than in an ad hoc manner. The network under this framework will be classified under a movement and place dimensions. Council will use the framework to guide its decisions on its transport network in the next Long Term Plan planning round. This will ensure that the transport network is accessible for the community, particularly the aging population.

INVESTMENT SUSTAINABILITY Identified in the last Waka Kotahi audit, Ruapehu spends what it can afford rather than what the network needs. Performance of our primary collector roads is good however the other roads do not perform or compare that well. Ruapehu relies on a high Waka Kotahi subsidy rate (74%) to manage the network in a fiscal manner.

197 2019/20 Roughness and Smooth Travel Exposure results

198 Significant issues for the land transport activity and principal options for managing these issues are detailed in the following table. The option(s) preferred as the most likely scenario have been identified.

Significant issues and options for land transport

Significant Principal options for managing Most likely scenario for Risk Implications of the Issues Years 1-10 Years 11-20 Years 21-30 issues the issue managing the issue (H/M/L) Option 1 is the preferred as the most likely    scenario – continue to Current Current Current respond to the needs of budgets are budgets are budgets are • No flexibility and agility to respond to industry. 1. Respond reactively to known (about known (about known (about the needs of the industry and Decision required by H industry demands. $100k pa for $100k pa for $100k pa for network when roads deteriorate. Council – This is current Council staff Council staff Council staff practice and is shown for time to time to time to completeness and therefore respond) respond) respond) no formal Council decision is required.    Current Current Current • Condition of the pavement may budgets are budgets are budgets are 2. Ensure sufficient funding make roads access limited or un- known known known Forestry and available to react to useable if funding is not sufficient. (Renewal (Renewal (Renewal H land use - pavement wear caused by • Forestry may not be able to projects at projects at projects at Impacts of the forestry routes. transport harvest out. about $8m to about $8m to about $8m to intense $9m pa over 10 $9m pa over 10 $9m pa over 10 forestry years) years) years) harvesting on the roading Option 3 is the preferred as the most likely    network. • Investment in renewals and heavy scenario – prioritise heavy Current Current Current 3. Work with industry sectors to maintenance not aligned to where maintenance and renewals budgets are budgets are budgets are understand their needs. forestry operations are being on plantation cartage known known known Prioritisation of heavy undertaken and extra funding routes. (Renewal (Renewal (Renewal H maintenance and renewal on required to react to pavement Decision required by projects at projects at projects at forest plantation cartage issues. Council – Renewal about $8m to about $8m to about $8m to roads • Wastage of works and funding. prioritisation undertaken is $9m pa over 10 $9m pa over 10 $9m pa over 10 • Customer complaints increase. part of ongoing network years) years) years) management.    4. Negotiate maintenance Current Current Current agreements with forest • Low volume roads budgets are budgets are budgets are H owner for harvest period on • Customer complaints known (about known (about known (about low volume unsealed roads. $50k pa for $50k pa for $50k pa for Council staff Council staff Council staff

199 Significant Principal options for managing Most likely scenario for Risk Implications of the Issues Years 1-10 Years 11-20 Years 21-30 issues the issue managing the issue (H/M/L) time to time to time to negotiate) negotiate) negotiate) • Without this information heavy    5. Collect pavement depth data maintenance and renewal works will Estimated Estimated Estimated to monitor trends and be reactive to failures rather than $100k pa for $100k pa for $100k pa for H planning. proactive planning to improve collection of collection of collection of pavements where it is needed most. technical data technical data technical data 1. Continue weight restriction, Option 1 is the preferred speed restrictions and as the most likely    permits on bridges. scenario – maintain Current Current Current restrictions and permits on budgets are budgets are budgets are • Bridges capacity is not improved bridges. known (about known (about known (about H (maintained). Decision required by $50k pa for $50k pa for $50k pa for Council – Bridge permitting Council staff to Council staff to Council staff to is part of ongoing network manage) manage) manage) management. 2. Invest and undertake bridge Option 2 is the preferred strengthening and renewal as the most likely  programme. scenario – undertake Programmes   • Bridge failure or damage if works bridge strengthening still to be Upgrade costs Upgrade costs are not undertaken. programmes. agreed and may be may be • Further restrictions are imposed to Decision required by upgrade costs significant significant H Ageing rural traffic using the bridge. Council – The capital may be (indicative (indicative bridges – • Loss of accessibility to the network bridge strengthening significant (cost cost estimate cost estimate bridge stock due to restrictions. programme to be approved estimate at at $0.5m over at $0.5m over needing by Council as part of the $13.4m over ten years) ten years) replacement 2021 Long Term Plan ten years) and process. upgrades. 3. Work with communities to    prioritise works. Current Current Current budgets are budgets are budgets are • Need to understand where the known (about known (about known (about demand/need is greatest within the H $30k pa for network. $30k pa for $30k pa for Council staff to Council staff to Council staff to liaise with liaise with liaise with communities) communities) communities) 4. Improve register of HPMV    and restricted bridges (refer • Safe routes are unclear leading to Current Current Current to Land Transport Activity breaches in bridges restrictions and budgets are budgets are budgets are Plan Appendix D). permits. known (about known (about known (about H • Risks and consequences are not $20k pa for $20k pa for $20k pa for fully understood and therefore not Council staff to Council staff to Council staff to managed appropriately. manage manage manage register) register) register)

200 Significant Principal options for managing Most likely scenario for Risk Implications of the Issues Years 1-10 Years 11-20 Years 21-30 issues the issue managing the issue (H/M/L) 5. Lobby central government.    • RDC has a small rate-based Current Current Current population compared to the size of budgets are budgets are budgets are the network (and assets within it) known (about known (about known (about H and need assistance in funding to $30k pa for $30k pa for $30k pa for maintain what they have. Council staff to Council staff to Council staff to lobby) lobby) lobby) 1. Continue pavement Option 1 is the preferred maintenance and renewal as the most likely    programmes and address scenario – continue to alignment/widening/cornering address issues with Current Current Current • Level of expectation not met. in conjunctions. alignment/widening & budgets are budgets are budgets are • Roads that access the ski fields are cornering. known known known not available during the ski season (Renewal (Renewal (Renewal L/M Decision required by (e.g. Ohakune Mountain Rd, Bruce projects at projects at projects at Council – This is current Rd) about $8m to about $8m to about $8m to practice and is shown for $9m pa over 10 $9m pa over 10 $9m pa over 10 completeness and therefore years) years) years) no formal Council decision Needs and is required. expectations 2. Utilise Low-Cost Low-Risk    - road users programme to address minor Current Current Current (local, freight, safety issues. budgets are budgets are budgets are events and known (Low- known (Low- known (Low- • Works would otherwise need to be tourists) Cost Low-Risk Cost Low-Risk Cost Low-Risk L/M funded out of other categorises. expectations programme programme programme are increasing about $1m pa; about $1m pa; about $1m pa; investment varies each varies each varies each level to year) year) year) improve the form and 3. Liaise with communities to Option 3 is the preferred prioritise works and spend. as the most likely function of    the roading Continue advocacy role with scenario – continue to ski operators. Current Current Current network. liaise with communities to prioritise programmes. budgets are budgets are budgets are known (about known (about known (about • Level of expectation not met. Decision required by L/M $50k pa for $50k pa for $50k pa for Council – This is current Council staff to Council staff to Council staff to practice and is shown for liaise with liaise with liaise with completeness and therefore communities) communities) communities) no formal Council decision is required. 4. Develop policy for assessing  footpath development and • Consistency in delivery of footpath Current - - L/M renewal requirements. assets in the network budgets are known (about

201 Significant Principal options for managing Most likely scenario for Risk Implications of the Issues Years 1-10 Years 11-20 Years 21-30 issues the issue managing the issue (H/M/L) $50k to develop policy then ongoing implementation) 5. Unsubsidised seal extension    programme. (indicative (indicative (indicative • Customer complaints. L/M cost estimate cost estimate cost estimate at $0.53m pa) at $0.53m pa) at $0.53m pa) 1. Continue with Ruapehu    Road Safety Action Plan. Current Current Current • Fatal and serious crash numbers budgets are budgets are budgets are are likely to increase with associated known (about known (about known (about H costs and impacts on the health $50k pa for $50k pa for $50k pa for system. Council staff for Council staff for Council staff for ongoing ongoing ongoing implementation) implementation) implementation) 2. Utilise Low-Cost Low-Risk Option 2 is the preferred programme to address minor as the most likely    safety issues. scenario – use Low-Cost Current Current Current Low-Risk funding to budgets are budgets are budgets are Safety – • Known risks/hazards are not address safety issues known (Low- known (Low- known (Low- vulnerable removed or minimised. where applicable. Cost Low-Risk Cost Low-Risk Cost Low-Risk H road users at • Crash statistics don’t improve. Decision required by programme programme programme risk due to Council – Revising the about $1.2m about $1m pa; about $1m pa; increasing Road Safety Programme is pa; varies each varies each varies each and changing part of the ongoing network year) year) year) activity and management. environmental conditions to 3. Undertake safety audits and Option 3 is the preferred    inspections and all serious as the most likely the transport • Road /hazards risks are not Current Current Current and fatal crashes are scenario – Focus on safety. network. identified and therefore cannot be budgets are budgets are budgets are investigated with respect to Decision required by managed appropriately. known (about known (about known (about H road conditions. Council – Revising the $50k pa for $50k pa for $50k pa for • Safety is not at the forefront of our Road Safety Programme is Council staff for Council staff for Council staff for actions. part of the ongoing network ongoing ongoing ongoing management. implementation) implementation) implementation) 4. Reset action plan to align Option 4 is the preferred    with Road to Zero strategy as the most likely Current Current • Not meeting key strategic direction Current scenario – alignment with budgets are budgets are set by the GPS. budgets are Road to Zero strategy. known (about known (about known (about H • Negative perception of RLC and its Decision required by $100k pa for $100k pa for $100k pa for road management. Council - Revising the Council staff to Council staff to Council staff to Road Safety Programme is implement implement implement

202 Significant Principal options for managing Most likely scenario for Risk Implications of the Issues Years 1-10 Years 11-20 Years 21-30 issues the issue managing the issue (H/M/L) part of the ongoing network management. 1. Continue proactive drainage Option 1 is the preferred maintenance and build as the most likely resilience and capacity scenario – to proactively • Lack of investment in resilience    during renewals. New assets build resilience into the programmes will make the network Current Current Current built with Climate Change network during renewals. more vulnerable to both high and budgets are budgets are budgets are consideration, not just like for Decision required by low probability events. known ($950k known ($950k known ($950k like replacements (e.g. Council – This is M • New assets just compound the pa for drainage pa for drainage pa for drainage culverts and bridges). conditional on budget being issues instead of help – new assets maintenance maintenance maintenance adopted as part of the 2021 designed and built to future and renewal at and renewal at and renewal at Long Term Plan process $530k pa) $530k pa) $5305k pa) requirements. then maintenance and renewal programmes can be implemented. Climate, 2. Respond reactively to Option 2 is the preferred   topography climate change and take as the most likely Current Current and geology direction from Central scenario – follow direction budgets are budgets are – the effects Government (Business on climate change from part of service part of service of climate  Continuity Plans and central government. level level change on Current Emergency Response Plans) Decision required by improvements improvements the network budgets are • Increased delays in the ability for the Council - This is conditional ($33.6m over ($46.3m over assets and part of service network, businesses and on budget being adopted as ten years ten years M performance. level communities to recover from events. part of the 2021 Long Term inflated) inflated) improvements Plan process for known ($29m over ten capacity projects. Council years inflated) approval is required as new information becomes available and management response to this. 3. Develop hazard identification  register About $50k to   • Risks and consequences are not develop register Ongoing Ongoing understood and therefore not M then ongoing implementation implementation managed accordingly. implementation about $20k pa about $20k pa about $20k pa

203 FINANCIAL SUMMARY

DECISIONS WE EXPECT TO MAKE We will need to make a number of key decisions over the duration of our strategy. Some of these decisions will be significant to the district and some will not. We consider our decision on three waters service delivery the most significant decision we will have to make.

Other key decisions and actions that will need to be made by elected members over the next 30 years include: • All activities: – Deliver much larger capital programmes particularly for water supply and wastewater, meaning debt levels will exceed the benchmarks in some years – We will continue with our maintenance and renewal programmes that targets interventions at appropriate levels consistent with good industry practice and meeting agreed levels of service. – Provide core infrastructure to enable growth in Ohakune and Taumarunui. • Three waters: – Accelerate the three waters capital programme – Identify a preferred three waters management option for the Manawatu-Whanganui Region. – Co-management with iwi, Regional Council and stakeholder groups as the platform for a holistic and integrated wastewater management approach. • Land transport activity: – We will implement the Road to Zero Strategy to prioritise safety risks across the network holistically. – Replacement of aging bridge stock. – Collaborate with the forestry industry in use and timing of logging activities impact on the roading network.

KEY FINANCIAL ASSUMPTIONS The financial assumptions for the most likely scenario for the district are as follows: • We will upgrade water supply treatment plants (National Park, Ohura and Owhango) so that they can comply fully with the Drinking Water Standards. However, there is a level of uncertainty with successfully gaining the full amount from the Government’s three waters stimulus grant. • There will need to be significant expenditure in the long term to meet higher environmental standards for wastewater discharges • There will need to be significant expenditure in the long term to meet requirements for the management of three waters and implement water reform requirements • We will maximise the useful and economic lives of our assets • We will use risk management practices to maximise assets and the management of risk of a critical asset failing • Climate change impacts will increase requiring better management of assets • There will be increased costs for the acquisition, implementation compliance and monitoring of resource consents. • Waka Kotahi will continue to provide subsidised funding to the Council for the road network over the next 30 years. • All financial information presented in our strategy includes inflation, except for the graphs which present the renewal and depreciation expenses.

RENEWAL DEPRECIATION COMPARISON The Figure below shows the annual renewal of $12 million (average) versus annual depreciation of $8 million. This shows that the forecast of renewals expenditure is higher than the depreciation over the 30-year period.

This is mainly due to the higher renewal investment in land transport than funded depreciation, and that gap is funded by Waka Kotahi. Three water capital works are classified levels of service due to legislative and environmental requirements. Most projects are a combination of levels of service and renewals (i.e. like for like scenario).

204 Combined renewal and depreciation (uninflated) 2021-2051

Source: Council’s LTP budget (as at June 2021)

FINANCIAL FORECASTS

The table below shows the total expected capital and operations expenditure for each infrastructure activity over a 30-year period (2022-2052). The breakdown of the capital expenditure between renewals, growth and level of service highlights that growth makes up only 2.9% of the total capital expenditure.

Expected total operating and capital expenditure (inflated)

Activity Capital Expenditure (30 year total) Operational Expenditure (30 year totals) Renewals Growth Levels of Service Operating Water Supply $113,363,409 $7,583,482 $73,739,476 $211,576,385 Waste Water $62,310,489 $9,007,844 $33,943,726 $127,985,933 Stormwater $10,816,331 $2,398,700 $9,723,614 $47,353,183 Land Transport $338,819,031 $3,507,736 $108,507,561 $688,361,818 Sub Total $525,309,260 $22,497,762 $225,914,378 $1,075,277,318 Total $1,848,998,718 Source: Council’s LTP budget (as at June 2021)

205 The Figure below shows the most likely scenario for total operating and capital expenditure for the combined assets. Combined infrastructure operational and capital forecast (inflated) 2021-2051

Source: Council’s draft LTP budget (as at June 2021) Over the next 30-years it is expected that: • Renewal expenditure across all the infrastructure activities is generally constant, water supply and wastewater have high capital programmes in 2021/22 • Limited provision for growth across the portfolio at present but as we gather better information, it is likely that there will be greater investment in growth, particularly to service Ohakune • Significant level of service investment in water supply treatment plants to comply with the Drinking Water Standards in the initial years than larger investment in wastewater to meet higher environmental standards • Land transport focus is on maintaining and strengthening resilience of existing assets.

206 ACTIVITY EXPENDITURE HIGHLIGHTS

WATER SUPPLY EXPENDITURE FORECASTS The Figure below presents the expenditure forecast for water supply which are based on the following assumptions: • National Park, Ohakune Ohura and Owhango Water Supply Treatment Plants will be upgraded in first five years so that all plants are fully compliant with Drinking Water Standards (part of the accelerated capital programme) • Undertake new water source assessment for Raetihi and Taumarunui • Renew resource consents for National Park, Ohakune, Ohura • Existing service levels will be maintained with significant investment required to ensure these are provided, particularly providing safe drinking water • Legislation with the three waters reform will have a significant impact on this activity and at a rapid pace • We will provide services at the levels forecast in our Water Supply Asset Management Plan and 2021 Long Term Plan.

Water supply expenditure forecast (inflated)

Source: Council’s LTP budget (as at June 2021)

207 The Figure below shows that the forecast for renewals is above the annual depreciation. This is mainly due to the classification of capital projects as noted earlier (i.e. combination of levels of service and renewals). Water supply renewals versus depreciation (uninflated)

Source: Council’s LTP budget (as at June 2021)

WASTEWATER EXPENDITURE FORECASTS The figure below presents the expenditure for wastewater which are based on the following assumptions: • The Government’s freshwater reforms to improve ecological health will require a higher environmental standard • The conditions and cost implications of the future resource consents for the wastewater treatment plants are uncertain • A new wastewater treatment plant proposed to service Ohakune and Raetihi townships to cater for growth, improve non-compliance issues and strengthen resilience • Wastewater treatment plant upgrades for National Park, Rangataua and Taumarunui • Existing service levels will be maintained • Legislation with the three waters reform will have a significant impact on this activity and at a rapid pace • We will provide services at the levels forecast in our Wastewater Asset Management Plan and 2021 Long Term Plan. Wastewater expenditure forecast (inflated)

Source: Council’s LTP budget (as at June 2021)

208 The Figure below shows that the forecast for renewals is about even with the annual depreciation of around $1million, with some spikes above. The forecast for renewals is generally above the annual depreciation.

Wastewater renewals versus depreciation (uninflated)

Source: Council’s LTP budget (as at June 2021)

209 STORMWATER EXPENDITURE FORECASTS The Figure below presents the expenditure for stormwater which are based on the following assumptions: • Resource consents will be impacted by the new requirements of the National Policy Statement for Freshwater Management 2020 through the Regional Policy Statement • Stormwater networks extensions in Ohakune to cater for growth • Various flood control improvements in Taumarunui • Legislative and regulatory changes will require stormwater treatment • Existing service levels will be maintained • Legislation with the three waters reform will have a significant impact on this activity and at a rapid pace • We will provide services at the levels forecast in our Stormwater Asset Management Plan and 2021 Long Term Plan.

Stormwater expenditure forecast (inflated)

Source: Council’s LTP budget (as at June 2021)

The Figure below shows that the forecast for renewals is well below the annual depreciation, except for in 2021/22. Stormwater renewals versus depreciation (uninflated)

Source: Council’s draft LTP budget (as at June 2021)

210 LAND TRANSPORT EXPENDITURE FORECASTS Figure 18 presents the expenditure for land transport which are based on the following assumptions: • Waka Kotahi will continue to provide us with subsidised funding for the road network over the next 30 years • We will continue to fund at the levels and ten year forecasts stated in our Long Term Plan • We will provide services at the levels forecast in our Land Transport Activity Management Plan and 2021 Long Term Plan. Over the next 30 years it is expected that Council’s major capital expenditure items include: • Bridge renewals and component replacements programme. • Low Cost Low Risk programme to address safety issues. • Footpaths and cycleways (Great Rides) to meet alternate transport modes. • Network resilience (climate change & resilience). • Programme of pavement rehabs and surfacing • Unsubsidised seal extension programme.

Land transport expenditure forecast (inflated)

Source: Council’s draft LTP budget (as at June 2021)

211 The Figure below shows that the forecast for renewals is consistency above the annual depreciation. This is a result of deferring works on an ageing structures replacements and forestry harvesting accelerating the deterioration of the pavement condition.

Land transport renewals versus depreciation (uninflated)

Source: Council’s draft LTP budget (as at June 2021)

Our land transport services are funded from a range of sources: • Waka Kotahi subsides (FAR) • Targeted rates • Fees and charges.

212 ASSUMPTIONS AND UNCERTAINTY

UNCERTAINTY AND IMPLICATIONS In developing this strategy, we have identified a few things that we do not know. This uncertainty has a flow on effect on the identification of issues, options for dealing with issues, and how we can best respond. This impacts the Financial Strategy.

The identified areas of uncertainty are: • The most significant area of uncertainty is Council’s reliance on grants and subsidies. There is less risk with Waka Kotahi continues to provide us with subsidised funding for the land transport network over the next 30 years at current levels. This is an established and mature process and plenty of opportunities to negotiate. There is a level of uncertainty with successfully gaining the full amount from the Government’s three waters stimulus grant applied for upgrading water standards and wastewater assets across the district. • Council’s ability to deliver the three waters capital programme as there has been poor achievement in the last three years (except for water supply in 2019/20). Council wishes to deliver a much larger capital programme to improve drinking water compliance. • Finding a culturally acceptable solution for managing wastewater discharges that is affordable for our community and technically achievable with physical constraints in some locations. • The duration of the international border closure and on the economic impact of the overseas tourist market on our District • Council infrastructure assets are located on land that currently are part of the Treaty Settlement • The conditions and cost implications of the future resource consents for the Wastewater Treatment Plants are uncertain. • Legislative changes, National Policy Statements and National Environmental standards that may require significant changes to the way we plan, manage and fund the infrastructure. • The impact of the Government’s Three Waters Reform Programme and how water services will be delivered. • The effect of climate change on Council’s core infrastructure. As Council develops its understanding of the impact from climate change, the long‐term response will need to be adapted for how to manage those effects on the infrastructure. • Future stormwater consent conditions may require us to be more proactive in stormwater quality management than current practices.

RELIABILITY OF INFORMATION Quality data is important for end users so that they can have confidence in making an analysis using that data. We continue to have sound practices with data management for the three waters with support from our Facilities Management Contractor (Veolia).

Three waters - The data for three waters assets are recorded in Council’s asset management system (AssetFinda) for all asset classes. The data confidence of the three waters asset data has been classified as reliable for inventory completeness and condition (in accordance with the International Infrastructure Management Manual), and mostly reliable for age.

Land transport - The Performance Measure Reporting Tool (PMRT) reports annually on the condition and performance of asset data. The following figures give an overview of where we are compared nationally.

213 PMRT score and overall results for 2019/20 data quality

Data quality results show a slight drop in our score but remain above the national average of 68 for the 2019/20 period. The low performing areas will look to be improved over the next year with the aid of MAX Quality reporting.

Spider diagram of RDC asset quality measures

KEY PLANNING ASSUMPTIONS This strategy is based on the following assumptions: • We will continue to proactively involve Māori participation in local government decision-making including the Ruapehu District Māori Council and Māori Electoral Wards • Waka Kotahi will continue to provide us with subsidised funding for the land transport network over the next 30 years • Domestic tourists will take the place of overseas visitors for the next three years

214 • Levels of service are defined in the Activity Management Plans for each activity, to meet legislative requirements and agreed to / accepted by the communities. Given financial pressures and the challenges faced by Council, there is no intention to alter them • Activity Asset Management Plans will test the affordability of delivering the customer outcomes. • Council will maximise the useful and economic lives of our assets. • Council will use risk management practices to maximise assets and the management of risk of a critical asset failing • Legislation with the three waters reform will have a significant impact on these activities and at a rapid pace • Climate change will affect our District over the medium to long term in line with projections provided by the Ministry for the Environment • Future resource consent conditions for three waters will be more restrictive and will cost more to comply with, implement and monitor • There is new monitoring and stringent enforcement of the existing resource consents for the wastewater treatment plants and Council will expect an increase in the number of non- compliances issued by the Regional Council until new / upgraded plants are completed.

215 FINANCIAL STRATEGY

SUMMARY

This strategy outlines where Council currently is, where it is heading and how it is going to get there. Council believes that this Financial Strategy outlines a reasonable approach to Council’s finances for the next ten years. We expect to be able to provide the finances necessary to carry out the works envisaged in the Infrastructure Strategy and provide the services the public expects whilst keeping our financial options open. Debt is forecast to exceed Council’s conservative self-imposed limits, as explained in the Strategy, but other benchmarks are within acceptable limits. However this will not come without major challenges.

To date Council has taken a prudent approach to ensure that the debt levels were kept within the financial benchmarks. This ensured that the ten year investment programmes were affordable for our community. However, in doing so a number of our drinking water treatment plants have not been meeting drinking water standards, and significant investment is now also needed to improve wastewater treatment quality and minimise the impact of overflows to the environment.

Council now wishes to ensure that we are meeting our legislative, regulatory, and environmental obligations to our community and key stakeholders.

To get there, we will have to accelerate the investment programmes, mainly in water supply and wastewater, and significantly increase our projected debt levels.

It is expected that debt will rise markedly towards the end of the ten year period because of the expected need to improve water and sewage treatment plants. Without the receipt of grants from Central Government or other third parties, our debt is expected to grow to $100M which will exceed Council’s conservative self-imposed prudential borrowing limits. While the forecast debt level is affordable (but not ideal) for our community within the 10 year window of this LTP 2021-31, Council acknowledges that the subsequent 20 years covered by this strategy would need to be reviewed if debt continued to climb at the rate of the first 10 years. This would be further impacted by what the future of the 3 Water review would hold, and what subsidies and grants become available for investment in that space. It should be noted that the receipt of subsidies or grants from Central Government has not been modelled (with the exception of Waka Kotahi subsidy and the portion of the three waters stimulus funding for which we have a signed funding agreement in place) but would substantially reduce our future borrowing requirements.

As part of our financial strategy, Council will continue to pursue all available opportunities to receive grant funding to minimize the burden on ratepayers. Where grant funding is not forthcoming, Council will seek to actively manage the scope and timing of investment to minimize the debt burden on ratepayers, to the extent that it is able to do so while still meeting regulatory and legislative requirements. Finally, Council has a number of opportunities to review their financial position both in the Annual Planning cycle, and may need to consider revising its self-imposed debt limits at the next Long Term Planning cycle to ensure it is fit for purpose. In short, debt will not be allowed to continue climbing unabated past year 10 of the Plan, and it is anticipated that Council’s efforts to obtain funding elsewhere will make the current forecasted ‘worse case scenario’ an unlikely outcome.

This financial strategy outlines how RDC will fund its services and activities prudently and sustainably for the benefit of both current and future residents.

The main challenges will be: • Managing the trade-off between rates and services • Managing the balance between debt and rates, and hence the trade-off between generations • Securing appropriate subsidies.

We believe that our modelling has produced the best outcome that we are able to achieve within the

216 current environment, while still delivering our key investment priorities and maintaining levels of service for our communities. However, this result has still resulted in significant increases in our total borrowing and we are very aware that a good continued financial environment is not inevitable. It will require active management and oversite by Council and its executive team.

217 INTRODUCTION

RDC’s financial strategy will assist to deliver on this vision while providing for an affordable and financially sustainable organisation, delivering good quality services while promoting growth.

This financial strategy summaries the overall direction of Council as proposed in the LTP budgets. These budgets have been prepared in the context of the following policies.

The following policies also form part of the overall financial direction of Council. In the LTP and available on Council’s website, or on request: (a) Revenue and Financing Policy, (b) Treasury (Investment and Liability Management) Policy, (c) Asset Management Policy.

The following related documents are also available on Council’s website, or on request: (a) Rates Remissions Policies, (b) Rates Postponement Policy, (c) Rates Remission (Māori Freehold Land Policy), (d) Development Contributions Policy.

All financial information presented in our strategy includes inflation, except for the graphs which present the renewal and depreciation expenses. Inflation has been determined using the Local Government Cost Index (LGCI) preparing by BERL Economics for Taituarā – Local Government Professionals Aotearoa. A table of these inflation factors can be found in the significant forecasting assumptions section of the LTP.

RATES After consideration of the challenges facing council, ratepayer affordability, and the trade-offs between rates and levels of service, Council has set a limit for the maximum rates increase year on year at the Local Government Cost Index (LGCI) plus 2%.

Rates affordability benchmark – projected annual rates increases 10.00% 9.00% Forecast Rate increase % 8.00% 7.00% 6.00% 5.00% 4.00% % Increase 3.00% 2.00% 1.00% 0.00%

Year

Quantified limit on rates increase Proposed rates increase (meets limit) Proposed rates increases (exceeds limit)

Source: Council’s LTP budget (as at June 2021)

218 The reason that the limit is more than zero is that Council must have some flexibility in organizing its finances and that, historically, it has been called on to perform more and more functions. This demands a greater level of resource to finance.

Setting rates increases at this level ensures that we are able to continue to meet our aspirations to balance the books, and to provide the levels of service expected of us by our communities and regulators.

We are forecasting to breach our quantified limit on rates in 2022 and 2023 due to a loss of revenue from DOC deciding to manage its own wastewater treatment plant in Whakapapa (in 2021/22), increasing compliance and regulation costs, and increased debt servicing costs associated with fast tracking of three water upgrades.

Rates and the incidence of rates are set out in the Revenue and Financing Policy.

DEBT

Council uses debt to account for intergenerational equity. This means that Council considers that future ratepayers should pay some of the cost of services and infrastructure they will use. Due to increasing level of service expectations, particularly in relation to investment in three waters infrastructure to meet new regulatory requirements, Council is planning to make much greater use of debt in this Long Term Plan than it has in the past.

After considering the role of debt for our communities, current borrowing costs and our investment needs, Council has set its limit on borrowings to be no more than twice the total annual rates bill for the long term plan period.

Quantified limit on borrowing – projected debt levels and benchmarks

120000 Debt Limit Benchmark ($000)

100000

80000

60000

40000

20000 Less than 2X Total annual rates bill rates annual Total 2X than Less 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year

Quantified limit on debt Proposed debt (at or within limit) Benchmark not met

Source: Council’s LTP budget (as at June 2021)

219 Our modelling predicts an increase in debt from a current level of $29m to $100m over the ten years, which will see us exceed our limit on borrowings. We will however continue to remain within the financial covenants imposed by our lenders.

Much of this rise in debt is expected to be offset by government subsidies for Water and Wastewater Treatment Plants. Careful consideration will be necessary to decide what projects will then proceed, and the impact and likelihood of council receiving these grants is outlined in Grants and Subsidies Section

Council’s net debt position will also vary for operational reasons, e.g. (a) It may be increased to spread out “rates shock” that may occur for various reasons, (b) It will increase markedly when large projects are built, (c) It may decrease as Council accumulates funds for future projects (d) It may decrease if council is successful in obtaining grants or subsidies from third parties (e.g. central government) (e) It may increase when a project is delayed, (f) It may increase because of natural disasters. The ability to raise debt is one of Council’s mitigations against unexpected events. Council maintains a $3m overdraft facility to this end

MANAGING BORROWING RISK Council plans to continue to use the Local Government Funding Agency (LGFA) to reduce the cost of long term debt and reduce its vulnerability to financial shocks.

LEVELS OF SERVICE

Managing levels of debt, rates affordability, and levels of service is a careful balancing act that makes tradeoffs against each element against the other. Changes to levels of service will have a consequential impact on debt or rates, which must be carefully taken into account.

The levels of service provided by Council have been set in cooperation with the community and through various consultation processes over a number of years. We consider that the levels of service that we provide are consistent with that other local authorities of our size and scale, and therefore do not propose any increase or decrease to levels of service in this long term plan (other than increases required by legislative change).

In general, we plan to maintain existing levels of service. Additionally, this plan proposes a number of projects in which we plan to improve the levels of service that we provide to our community. These changes in Level of Service will include some of the “Spade Ready” projects and other funding for projects that RDC has received from Central Government (for example cycle ways). Council expects to improve its services in the following areas: (a) Urban revitalisation in the centres of its main towns. (b) Water and wastewater treatment plants are likely to have to be upgraded as resource consents are renewed and many must be upgraded to meet increasing regulatory enforcement and standards. (c) More tourist focused infrastructure such as car parking and toilets are likely to be required. (d) Housing

Where council invests in increasing levels of service, or providing new services, it is likely that there will also be increases to the ongoing (operating) costs to maintain these assets/service levels.

As part of RDC’s strategy, we apply for operational costs along with capital costs for Government subsidised projects.

Investment in level of service enhancing assets is typically funded through debt, with council actively also seeking subsidies and grants from Central Government and other third parties.

INCREASES IN OPERATION COSTS FROM MANDATED IWI RELATIONSHIPS RDC is aware of the financial challenges that will need to be meet as RDC works towards the concepts

220 describe in the Local Government Act (put in act) in our relationships and engagement with iwi at both the operational and governance levels. To manage this within the rate increase limits, described in this Strategy, Council will work with Central Government on funding to achieve this.

SUSTAINABILITY AND AFFORDABILITY Ensuring a financially sustainable council requires us to ensure that we cover our normal operating expenditure with normal revenue. That means ensuring that we collect enough revenue from rates, and fees and charges, to cover our regular costs.

Balancing our budget means that we only borrow to cover investment in assets that improve levels of service or service growth.

Council plans to maintain a balanced budget throughout the period of this LTP, as shown in the chart below. This includes, where appropriate, increased operating costs associated with planned increased levels of service. Balanced budget benchmark – total revenue divided by total operating expenditure

160% 136% 140% 120% 111% 120% 109% 107% 107% 107% 109% 108% 108% 108% 100%

80%

60%

40%

20% Revenue/operating expenditure (%) expenditure Revenue/operating 0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year Benchmark met Benchmark not met Benchmark

Source: Council’s LTP budget (as at June 2021)

The sustainability and affordability of the District is of the utmost importance to Council. To achieve this, we will balance the desirable Infrastructure investment with the debt levels and rates income we can afford, while taking into account the uncertainties government subsidies for the Water and Waste Water investment necessary.

Council is confident that in the long term the economy of the Ruapehu is fundamentally sound and that it will be possible to provide services at a reasonable cost over the next 10 year period, with active management and oversight from Council.

221 CURRENT CHALLENGES AND UNCERTAINTIES

This LTP is being prepared at a time of significant uncertainty. The significant forecasting assumptions outline in detail all of the significant assumptions. The following summaries those assumptions that are most significant to Council’s financial strategy and why.

COVID-19 During the past year New Zealand has faced the challenges of dealing with a global pandemic. New Zealand’s response so far has focused on insulating the country from the virus through strict border control and intermittent restrictions on personal movement. While this has largely protected the country from the health impacts of the virus, it has had clear impacts on both domestic and international tourism (the latter being almost entirely absent).

Ruapehu District Council currently collects 70% of its operational revenue from rates, and 20% from grants. While this insulates us from the direct effects of economic downturn in the region, the impact of any recession or fall in employment in the region will have an impact on the affordability of our rates for our community. This may require consideration of potential hardship leniency from Council.

THREE WATERS The government has embarked on a major programme or structural and regulatory reform of the delivery of three waters (drinking water, wastewater and stormwater) services, which is likely to have major impacts on the Council, and in particular: • The establishment of Taumata Arowai, the water services regulator, and impacts of the Water Services Bill is likely to result in a significant uplift in operating costs and investment requirements in the district. In this LTP Council is fast tracking investment in three waters assets to ensure that it is able to meet the required standards. • The potential structural reform could have significant impacts on council’s income, expenditure, balance sheet, and resources. At this stage it is unclear what structural reform may look like, and it is unlikely that it will have any impact in the next three years.

CLIMATE CHANGE Climate change is a major management issue facing all infrastructure providers and the built environment. Ruapehu District is tested further as it has physical constraints / natural hazards including the Mountain and is subject to intense weather events that need to be considered in the context of climate change impacts. It is also exposed to a variety of natural hazards including earthquakes and volcanic eruptions.

The impacts of climate change have been considered in more detail, and are embedded throughout, our Infrastructure Strategy and Asset Management Plans, which outline the ways in which planning for climate change is driving our investment needs. Responding to the effects of climate change, and managing our carbon emissions, will continue to be a driver of investment over the long term.

SUBSIDIES AND GRANTS The most significant areas of uncertainty are Council’s reliance on grants and subsidies ability to deliver our needed capital works and maintain debt at an affordable level. Our financial strategy requires us to pursue all opportunities to obtain funding from central government and other third parties, which will help to offset projected increases in debt.

There is less risk with Waka Kotahi NZ continuing to provide us with subsidised funding for the land transport network. This is an established and mature process and allows plenty of opportunities to negotiate.

However, while there is a level of uncertainty regarding Council’s ability to successfully gain the full three waters stimulus grant that has been applied for from the Government for upgrading water standards and wastewater assets across the District, we are planning to undertake these upgrades regardless of the success of the funding application (a portion of this funding has already been secured through a signed funding agreement and has been included in our financial projections for year 1 of

222 LTP). It is untenable for Council not to comply with the Drinking Water Standards. Council will be exploring alternative funding options and will investigate opportunities to alter scope and timing to reduce this risk. We therefore expect that we likely need to consult with the community through exceptions to future Annual Plans.

A high-level assessment of the levels of uncertainty for gaining external funding and delivering the capital programmes is summarised in the following table. Impact of reliance on grant funding

Activity Is this Comments Grant Third party Potential Chance of require funding investment Debt practical (i.e. must source certainty impact delivery do)

There is a strong chance that funding support from Central Government will be available to Water DIA / fast track drinking water reform changes. Yes Moderate High Moderate supply MIBE However, this Long Term Plan cannot include this possibility with key assumptions due to timing of any such announcements. There is also support for the idea that drinking DIA / Moderate / water outcomes will be prioritised, and Wastewater Yes Low High MIBE low immanent funding support announcements for wastewaters appear a little further off. Long Term Plan does not make any assumptions around possible funding opportunities in support of Storm Water. DIA / Moderate Stormwater Yes Low Moderate Environmental standards continue to shift the MIBE / low focus and outcome requirements in this space, and planning with certainty is quite challenging. Well established supply chain and committed funding. There is potential that some bridge Land Waka work not covered by Waka Kotahi will require Yes Very high Limited High transport Kotahi Council to fund which it would do through debt. These are one off items in what is otherwise a very stable work programme. LTP includes a number of Township Revitalisation outcomes that are to be debt funded to account for intergenerational equity. These would go ahead in consultation with community regardless of external Varied/ funding, but Council is very open to using both Community proposed budgets as 'seed funding' with other Public Facilities Moderate/L Moderate/ Moderate/Hi partners to deliver further value than forecast. No and (Town ow High gh However, 3rd party investment cannot be private Revitalisation) assumed in this LTP, and as such counts as investor 100% RDC investment. Practical delivery will potential have strong political and community support, and supply chain issues are somewhat lessened in this activity due to lower competition for resources from out of district or competing priorities.

223 GROWTH AND DEMOGRAPHIC CHANGE Over the next decade Council’s long term growth projections suggest the number of jobs in traditional occupations of the usual resident population of Ruapehu will continue to decline. Over the same period the number of tourist related jobs was expected to increase. Taking account of the effects of Covid19, this is expected to slow down, in the short term, but resume in later years. With this increase and the number of tourists, Council has assumed that the cost of providing its services will increase. These assumptions and their impact on each service is outlined in each AMP. The number of visitors also challenges and puts pressure on Council’s assets. This is most obvious in the water and sewage treatment services. The amount of refuse and recycling collected is another good indicator of tourist sector growth. Council needs to consider the visitor industry when setting its levels of service and assets development.

This LTP allows for this growth with major projects that can be divided into two categories: • The first is the need to cope with larger volumes for water supply and effluent disposal in the tourist hotspots, principally Ohakune. These are counted as growth projects. • The second is the continuing project to revitalize our town centres, to make them the focus of growth in vibrant and diverse living spaces. Significant capital works are proposed for Town Centre Revitalisation in the next ten years.

Investment in infrastructure to service growth will be funded primarily by debt, and some development contributions.

NATURAL DISASTERS Council has taken into consideration the impact of any possible natural disaster, e.g., lahar, floods, eruption, earthquake and other possible civil defence incidents. The Financial Strategy needs to be flexible to allow for these types of incidents.

The flexibility has been provided by an overdraft facility and ensuring our total borrowing remains sufficiently within the financial covenants imposed by our lenders to enable further borrowings in the event of a natural disaster.

CHANGES OF LAND USE Council is not expecting any changes to land use over the term of this LTP in the District.

Some Council infrastructure assets are located on land that currently are part of the Treaty Settlements. There is uncertainty with this current state and a pragmatic mechanism is required for dealing with these assets. The location of these assets may need to be considered in future as they are replaced / upgraded.

LTP CAPITAL EXPENDITURE

Council’s planned capital expenditure programme for the LTP period is summarised in the charts and table below and detailed in our infrastructure strategy and asset management plans.

Council plans to spend more on capital projects for infrastructure assets than its annual depreciation cost for every year of the long term plan as shown by our performance against the essential services benchmark shown below.

224 Essential services benchmark (capital expenditure on infrastructure assets divided by depreciation)

300% 261% 262% 250%

183% 195% 185% 200% 175% 171% 168% 165% 156% 155% 150%

100%

50% Capital expenditure/depreciation (%) expenditure/depreciation Capital 0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year

Benchmark met Benchmark not met Benchmark

Source: Council’s LTP budget (as at March 2021)

The majority of this investment (63%) is being applied to the renewal of our existing assets, which ensures that we are able to continue to provide existing levels of service. Level of service investment is driven predominantly by legislative and regulatory compliance in 3 Waters, and community expectations around Township Revitilisation outcomes.

Breakdown of forecast capital expenditure by activity and capital expenditure driver

10 year Forecast CAPEX Spend ($000) Growth Level of Renewal Total % of total Service Land Transport 935 28,944 90,381 120,260 51.4% Water supply 2,035 18,316 30,448 50,799 21.7% Waste Water 2,420 7,707 16,734 26,861 11.5% Community Facilities 9,153 7,972 1,366 18,491 7.9% Stormwater 644 2,612 2,905 6,161 2.6% Community Support - 403 808 1,211 0.5% Waste Management 177 846 - 1,023 0.4% Regulation 7 7 0.0% Support and Overhead - 3,343 5,701 9,044 3.9% Total Forecast Spend 15,364 70,143 148,350 233,857 100%

Source: Council’s LTP budget (as at June 2021) – inflated

RENEWALS Renewals are where we replace assets (or parts of assets) as they start to age and fail. This is funded primarily through rates via the depreciation calculation, and grant funding from NZTA. Renewals are the largest part of the capital expenditure and enables Council to keep its infrastructure and services at the current level. It does not allow for improvements. Where renewal work exceeds funded depreciation

225 levels in a given year, debt may also be used. Examples of this would be bridges or 3 water plant renewals that create ‘peaks’ in capital work forecasts.

Depreciation provisions have been set by Industry standards rates that have remained constant for many years until recently.

2015 – 25 LTP 2018 – 28 LTP 2021– 31 LTP Water Supply Pipes 40 – 80 years 60-110 years 60-110 years Wastewater Pipes 50 – 80 years 60 -92 years 60 -92 years Storm water Pipes 50 – 60 years 70 – 92 years 70 – 92 years

Because much of our underground pipe asset is less than 50 years old this does not affect immediate Expenditure but does affect our long-term modelling.

This is discussed in more detail in the Infrastructure Strategy and the relevant AMPs.

226 POLICIES ON LENDING AND INVESTMENTS

Council’s policies on issuing securities for borrowings and its objectives for holding and managing investments are outlined in its Treasury Policy (Investment and Liability Management) which is available via Council’s website, or a hard copy will be supplied upon request, and summarised below. POLICY ON GIVING SECURITIES

Security will be provided over rates revenue (per section 115 of the Local Government Act 2002) unless special circumstances require security over assets or specially deemed rates. Security will not be given over one or more of Council’s assets without prior Council resolution. Where borrowing is by way of finance lease or some other form of trade credit under which it is normal practice to provide security over the asset concerned, Council may offer security over the asset. OBJECTIVES FOR HOLDING AND MANAGING INVESTMENTS

Council is a risk adverse entity and therefore takes a prudent approach to managing its investments. Council seeks to maintain diversity in its investment portfolio to spread and minimise risk. Council generally has three types of investments: (a) Strategic Investments - investments made or held in alignment to Council’s strategic direction and typically retained on a long term basis. These include property investments - i.e. land and buildings (including subdivisions) – quarries, forestry and property vested in the Council. (b) Equity Investments - equity (ownership) participation in a private (unlisted) company (including Council Controlled Organisations) or a start-up (a company being created or newly created). Such investments may not necessarily provide a financial return to Council, and may be held for wider social, tactical and/or economic reasons. Notwithstanding, Council will continue to actively seek opportunities for a financial return from all such investments. (c) Treasury Investments – short to medium term financial investments that maximise financial return but ensure an appropriate level of liquidity for forecast expenditure

KEY LIMITS

Measure Limits Rate Charges Rates increase less than LGCI index plus 2% over ten years Limits reviewed every three years. Debt Less than twice the annual rates bill. Balanced Budget Council’s revenue exceeds operating expenditure as defined in the Local Government (Financial Report and Prudence) Regulations 2014.

227 Significance and Engagement Policy (Summary)

THE DECISIONS THAT THE COUNCIL MAKE AFFECT COMMUNITIES ON A DAILY BASIS. SOME DECISIONS ARE MORE SIGNIFICANT THAN OTHERS, DEPENDING ON THE ISSUE. SMALLER OPERATIONAL DECISIONS TYPICALLY REQUIRE LITTLE IF ANY ENGAGEMENT WITH THE COMMUNITY, WHEREAS OTHER DECISIONS MAY REQUIRE A ROBUST DECISION MAKING PROCESS AND EXTENSIVE COMMUNITY ENGAGEMENT.

The purpose of the Significance and Engagement Policy (SEP) is to: • Enable Council and communities to identify the degree of significance attached to particular issues, proposals, assets, decisions and activities. • Inform the community about what they can expect from Council regarding consultation and engagement. • Outline which assets Council considers strategic.

Determining the significance of an issue is often an exercise in judgement. Council must assess how a decision may affect the community. There are both qualitative and quantitative considerations when determining the significance of a matter.

Qualitative considerations include things like the degree of impact on the community, whether the matter generates wide public interest of controversy, the impact on Council debt or rates, etc.

Quantitative considerations include major changes in funding requirements, changes to levels of service or major changes to the current state of Council’s strategic assets.

Once the level of significance has been determined, the right level of engagement with the community can be determined. The range of tools available is wide, from no engagement being necessary through to the full Special Consultative Procedure as used for the development of the Long Term Plan and other large projects. There are several levels of engagement: • Inform • Consult • Involve • Collaborate

In general, the higher the degree of significance, the greater the community engagement and consultation.

228 REVENUE AND FINANCE POLICY

THE REVENUE AND FINANCING POLICY IS A DOCUMENT WHICH SETS OUT HOW COUNCIL PLANS TO FUND ALL OF ITS OPERATING AND CAPITAL EXPENDITURE AT AN ACTIVITY LEVEL OVER THE LIFE OF THE LONG- TERM PLAN.

POLICY OBJECTIVE The Policy discusses all the potential revenue and funding sources available to Council and outlines how and when it will use these. In order to arrive at its chosen funding arrangements Council has, in accordance with section 101(3) of the Local Government Act 2002 (LGA) taken account of many factors, including: (a) the community outcomes to which each activity primarily contributes, (b) who benefits from the activity, (c) over what period of time the benefits are delivered, (d) whether the activity is needed in response to the action(s) (or lack of action(s)) of some person or group, (e) whether it would be more prudent for the activity to be funded separately or included with other activities. Finally, the Policy discusses how Council addresses “the overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental and cultural well-being of the community.”

Every activity has been analysed using the factors discussed above in paragraph 1.1.1. This analysis has then been used to develop a set of funding decisions about the use of rates, both general and targeted, user charges, and other funding sources to arrive at what Council considers is an optimal funding arrangement for the activity.

The next step has been for Council to consider the overall effects of these separate funding proposals on the district as a whole.

The purpose of the Revenue and Financing Policy is to: (a) demonstrate how and why Council funds each of its activities, (b) make known Council’s intentions regarding funding methods for each of Council’s activities so the Ruapehu community can monitor and assess Council’s prudent financial management, (c) comply with Sections 101, 102 and 103 of the LGA which requires Council to develop and consult on a Revenue and Financing Policy for inclusion in the Long Term Plan. DEFINITION

Defence Land has the same meaning as in Section 22 of the Local Government Rating Act 2002 (LGRA).

Exacerbator means a person or group of people whose actions or inactions contribute to the need to undertake an activity. PRINCIPLES After taking account of the factors identified above, Council has agreed the following basic principles to guide the assessment of fairness and equity in choosing funding sources. (a) Each generation of ratepayers should pay for the services they receive. (b) User charges are preferred whenever a private benefit can be identified; and it is efficient to collect the revenue. (c) Council will use any other funding sources before rates. (d) Capital expenditure to replace assets will be primarily funded from depreciation. (e) Capital expenditure to upgrade or build new assets will initially be funded through borrowings. (f) Rate increases will be within the limits set in the Financial Strategy.

229 (g) Borrowing will be within the limits set in the Financial Strategy.

Complying with these principles can at times be challenging. Council must apply judgment in assessing many options to determine fairness in the development of budgets or acquisition of assets along with the choice of funding sources to implement these. POLICY STATEMENT

OPERATING COST FUNDING SOURCES

SOURCES OF FUNDING OPERATING EXPENDITURE LGA Section 103(1) (a) requires Council to disclose policies in respect of the funding of operating expenses from the sources listed in Section 103(2).

Operating expenses are funded annually using a mix of sources as described below. Borrowing is not generally used to fund operating expenses.

USER CHARGES User charges are used for services where there is a benefit to an individual or group. The price of the service is set, taking account of a number of factors. These could include: (a) The cost of providing the service. (b) An estimate of the users’ private benefit derived from using the service. (c) Whether there are identifiable and distinct user groups/exacerbators identified by Council’s Revenue and Financing Policy. (d) The impact of cost to encourage/discourage behaviours. (e) The impact of cost on the demand for the service. (f) The cost and efficiency of collection mechanisms. (g) The impact of affordability on users. (h) Other matters as determined by Council. (i) The user charge represents the fairest method to seek a contribution from identified beneficiaries or exacerbators.

GRANTS, SPONSORSHIP AND SUBSIDIES Grants, sponsorship and subsidies are used wherever they are available. The council expects to continue receiving substantial subsidies for road maintenance, and other Central Government grants/subsidies for waters and tourism infrastructure.

Some services can only be continued so long as funding from these sources continues.

INVESTMENT INCOME; DIVIDENDS, INTEREST Income from dividends and interest is used to offset the overall costs of Council.

OTHER REVENUE Council receives other operating income from: (a) Petrol tax (b) Property rentals (c) Other minor sources

RATES Having exhausted all other funding sources, Council proposes to funds its remaining operating expenses from rates. For many activities, this is the main funding source reflecting Council’s view that the collective benefit to the District is greater than any identifiable individual benefit.

Council recognises that there is a balance between transparency and efficiency when considering rating options. In deciding whether to introduce a new targeted rate Council must take into account the overall costs before deciding on whether to separately fund the activity.

Some activities may be best funded using user charges, such as the issue of building and resource

230 consents. Other activities are better funded by targeted rates such as water and sewerage services.

SEPARATE FUNDING Distinct or separate funding enables ratepayers or payers of user charges to assess more readily whether or not the cost of the service to them represents good value. They can also more easily determine how much money is being raised for and spent on the service. This is seen to promote transparency and accountability.

One of the factors Council is required to consider when deciding whether to separately fund an activity is the costs and benefits that might be achieved by that separate funding. The intent of this requirement is to avoid incurring costs in separately accounting for an activity where there is no clear benefit in so doing.

RATES GENERAL RATE A General Rate set as a differentiated rate in the dollar on capital value (CV) applied to all properties in the District with the exception of Defence Land which is rated on capital value but in accordance with Section 22 LG(R)A, the rate does not exceed the amount that would have been charged if the District’s rate was calculated on the basis of land value only

General Rate Differentials All land except for hydro-electric properties worth in excess of $50 million (CV) Hydro-electric properties worth in excess of $50 million (CV)

The General Rate is used when: (a) Council considers that a capital value rate is fairer than the use of other rating tools for the service funded, (b) Council considers that the community as a whole should meet costs of the activity or function, (c) Council is unable to achieve its user charge targets and must fund the expenditure shortfall.

UNIFORM ANNUAL GENERAL CHARGE (UAGC) A UAGC funds a portion of Council’s general costs. The UAGC is assessed on the basis of the Separately Used or Inhabited Part (SUIP) of a Rating Unit to part fund the activities of Council. The amount of the UAGC is set at a level designed to ensure that the total of the UAGC and other targeted rates set on a uniform basis as an amount per rating unit or per SUIP of a rating unit, exclusive of those set for water supply or sewerage disposal do not exceed the allowable maximum of 30%. It forms part of the General Rate.

The total rate revenue from the UAGC together with other targeted rates set on a uniform basis as an amount per rating unit or per separately used or inhabited part of a rating unit (other than those set for water and wastewater), will not exceed 30% of the total rates.

TARGETED RATES Council proposes to set a number of targeted rates to fund a range of services. Some of these rates are seen as proxies for user charges, particularly for services such as water and sewerage. These rates are described as “proxies” because they are generally fixed amounts payable by the different category of ratepayer, rather than an amount based on the level of usage.

An example of the difference between a proxy and a user charge is the way that Council charges for sewerage. Council charges a fixed amount to the rating unit based on the number of SUIPS and/or the number of pans. If that rate were a true user charge, Council might charge on the basis of the amount of sewerage being discharged. Setting rates on that basis is not permitted so the only legal mechanism allowing for a rate to be truly usage-based is a water by meter rate.

A targeted rate may be used when: (a) Council considers that a targeted rate would enable a higher level of transparency in funding allocation; or (b) Council considers that a targeted rate is fairer than the use of other existing rating tools for the

231 activity or service funded, in consideration of the benefit derived from the service; or (c) There is not an equal benefit to all of the district’s ratepayers.

A targeted rate may be set on a number of bases: (a) Uniformly as a Targeted Uniform Annual Rate if Council considers there is an equal benefit to the district ratepayers or a specific beneficiary group/s, or (b) Differentially as a Targeted Annual Rate (TAR) if Council considers that the benefits arising from the rate varies according to the nature or location of the district ratepayers or specific beneficiary groups.

DIFFERENTIAL RATES A differential may be applied to the General Rate under Sections 13 and 14 of the LGRA or a Targeted Rate under Sections 16 and 17 of the LGRA based on the categories set out in Schedule 2.

Differential rates mean that some ratepayers may pay more or less than others with the same value property if the rate is differentiated based on the non-value based matters in Schedule 2.

GENERAL AND TARGETED RATES The general rate is differentiated for hydro-electric properties worth in excess of $50 million. This is because Council considers that an undifferentiated rate on these properties would be unreasonable as a result of their extreme values. These properties will be charged a differential of 61% of the full general rate (or a factor of 0.61) and 61% of the targeted rate for Land Transport (or a factor of 0.61).

A higher differential will apply to the Land Transport targeted rate for properties where commercial forestry is the main or a significant activity. This is because Council considers that a differential rate will result in the commercial forestry sector paying a fairer share of roading costs, given the level of road pavement consumption relative to other land use categories. These properties will be charged a differential of 300% of the Land Transport targeted rate (or a factor of 3). COUNCIL SETS THE FOLLOWING TARGETED RATES LAND TRANSPORT A differentiated targeted rate set on the basis of Capital Value on all rating units in the District

Land Transport Rate Differentials Differential Basis General All rating units other than the following: Hydro-electric Rating Units used for Hydro-electric purposes with a Capital Value in excess of $50 million Forestry Rating Units used for exotic forestry with a Quotable Value Property Use Code of FE

ECONOMIC DEVELOPMENT TARGETED RATE A uniform targeted rate set on the basis of a fixed amount per SUIP on all rating units in the District.

ECONOMIC DEVELOPMENT COMMERCIAL TARGETED RATE A targeted rate set on the basis of a rate per dollar of capital value on all rating units with QV Property Use Codes C (commercial) and I (industrial).

NON-COMMERCIAL VISITOR ACCOMMODATION TARGETED RATE A Visitor Accommodation Rate set on the basis of a fixed amount per rating unit to fund services provided to the tourism sector. This rate will be assessed on any property that is advertised in any form as providing short term accommodation to the tourism sector. For clarity, this rate will be payable by any property (rating unit) that is advertised and used for accommodation purposes, for example Bed & Breakfast (B&B), Book-a-Bach, Air B&Bs etc. This rate will not, however, be payable by any rating unit that is currently assessed as Economic Development – Commercial Targeted Rate.

SOLID WASTE - WASTE MINIMISATION MANAGEMENT & FACILITIES A targeted rate set on the basis of a fixed amount assessed differentially on every SUIP in the District to fund the cost of landfills, transfer stations and general recycling costs, plus all other refuse costs

232 not included in the service charge for curbside collection charged to individual households.

URBAN PERIPHERY ROADS A targeted rate set on the basis of a fixed amount per rating unit for all rating units with frontage on Kaha or Tau Streets, Rangataua (excluding the three rating units with frontage on a short section of Tau Street already sealed: valuation numbers 12765 198 00; 12765 222 00; 12765 223 00).

WARM YOUR WHARE A targeted rate set on the basis of a fixed amount per rating unit for all rating units to fund advances for insulation that join the Warm your Whare Scheme.

VERANDA REPLACEMENT A targeted rate set on the basis of a fixed amount per rating unit for all rating units to fund advances for the ratepayer share of veranda replacements.

ENVIRONMENTAL RESILIENCE RATE A targeted rate set on the basis of a fixed amount per rating unit for all rating units to fund advances for the implementation of central government environmental policy.

STORMWATER AND FLOOD PROTECTION (URBAN) A targeted rate set on the basis of a fixed amount per SUIP of a rating unit within the communities of Taumarunui, Piriaka, Ohakune, Raetihi, Owhango, National Park, Rangataua, Waiouru, Kakahi to which stormwater and flood protection services are provided to fund these services. In this context, “are provided” means that the rating unit is within a water or sewerage supply area or an area serviced by curbside collection AND is liable for any of those rates.

SEWERAGE RATES

SEWERAGE SERVICE RATE A targeted rate set on a differential basis for any land which is connected or capable of connection23, either directly or indirectly, to any of the District’s public sewerage systems as follows.

Note: Capable of connection means that rating unit is not currently connected to the sewerage reticulation but is within 30 meters of reticulation, capable of connection and Council is willing to allow it to connect.

Sewerage Differential Rate

Differential Description General Use Land other than land used for Primary and Secondary Schools School Use Land used for Primary and Secondary Schools.

The rate is assessed per SUIP of a rating unit for general use land and per pan for schools.

ADDITIONAL PAN RATE (WATER CLOSET OR URINAL) A targeted rate set on any rating unit in the general use category as defined above that has more than two pans per SUIP and which is connected, either directly or indirectly, to any of the District’s public sewerage systems.24 The rate is assessed per pan.

23 Capable of connection – The rating unit is within 30m of sewer main practicably serviceable in the opinion of Council 24 In terms of the Local Government (Rating Act) 2002 Schedule 3(4) a rating unit used primarily as a residence for one household will be treated as having only one water closet or urinal.

233 WATER RATES A targeted rate set on the basis of a fixed amount assessed differentially on every SUIP that is connected or capable of connection, either directly or indirectly, to any of the District’s Public Water Supply Systems. Water Differential Rate Differential Description General Use All Rating Units/SUIPS other than those defined as Extraordinary Use

Extraordinary Use Rating Units/SUIPS are deemed extraordinary by land use, Councils Water Supply Bylaw, or agreement with Council.

Note: Capable of connection means that rating unit is not currently connected to the water supply but is within 100 meters of reticulation, capable of connection and Council is willing to allow it to connect.

FEES AND CHARGES Fees and charges will be sought according to Council’s Revenue and Financing Policy where: (a) it is assessed that the level of benefit to identified beneficiary/exacerbator groups justifies the seeking of user charges, (b) there are identifiable and distinct user groups/exacerbators identified by Council’s Revenue and Financing Policy, (c) user fees represent the fairest method to seek a contribution from identified beneficiaries or exacerbators.

GRANTS AND SUBSIDIES Council receives significant subsidy to part-fund operations, renewal and capital development in Land Transport. The percentage of this subsidy differs for different types of works.

OTHER FUNDING Council also uses the following funding methods: (a) extra income, petrol tax, interest and dividends - Council receives limited interest and dividends. (b) proceeds from asset sales - used to offset debt first. (c) loan funding.

Council may receive additional minor funding from other sources, including Fees and Charges, across all activities.

234 SUMMARY OF OPERATING FUNDING SOURCES

Figure 1 - Summary of Operating Income

SOURCES OF FUNDING CAPITAL EXPENDITURE

CAPITAL EXPENDITURE Capital expenditure is the spending which Council undertakes for the purchase, development or acquisition of assets which provide the community with a service over a longer period of time than is the norm with operating expenditure.

There are a range of Capital Funding sources available to Council as set out below. Council’s policy is that the funding of capital developments will be prioritised as follows:

USER CHARGES User charges are generally not available for capital costs. GRANTS, SUBSIDIES, AND OTHER INCOME Contributions towards capital expenditure from other parties such as Waka Kotahi NZ Transport Agency (Waka Kotahi) (in relation to certain roading projects) and the Crown (in relation to certain projects). FINANCIAL CONTRIBUTIONS Financial Contributions are sought in accordance with the Financial Contributions Policy in the District Plan. Any contributions are held in separate accounts, according to the purpose for which they are raised. Council has received limited financial contributions to date.

DEVELOPMENT CONTRIBUTIONS Development Contributions are sought in accordance with Council’s Development Contributions Policy. Contributions from this source of funding are held in separate accounts, according to the purpose for which they are raised. The funds will be applied to projects that have resulted from

235 development in the District.

BORROWINGS For larger capital costs that provide a long-term benefit to the community, Council may determine that borrowing the funds is the fairest method of allocating the costs of a project over time to users.

REVENUE COLLECTED TO COVER DEPRECIATION CHARGES Renewal projects are primarily funded from depreciation where those funds are available. Because Council only started funding depreciation in 1999/2000 the accumulated depreciation funds often do not have sufficient reserves to replace the assets. In those cases, Council will rely on borrowings.

PROCEEDS FROM THE SALE OF ASSETS From time to time, the Council sells assets. Council will use the proceeds from the sale of assets, after paying for the cost of sale to repay any debt attached to the asset.

Some assets have restrictions on how the proceeds may be used, for example proceeds from the sale of land that previously had a reserve status can only be used for reserve purposes.

OPERATING SURPLUSES Operating surpluses can be used to fund capital expenditure.

RATES Rates are primarily used to fund Council’s day to day expenses. This includes funding an annual amount toward the ongoing replacement of existing assets (depreciation); and the funding of its financing costs on debt created to purchase assets.

From time to time Council may undertake specific capital works funded by borrowings, where the debt repayment is sourced from targeted rates. Usually, these are in respect of specific community projects.

COUNCIL’S S101(3) ANALYSIS FOR SOURCES OF CAPITAL EXPENDITURE BY ACTIVITY Council will generally fund the cost of borrowing on the same basis as operating costs unless it resolves otherwise.

Generally, it is not practical to create separate funding policies for each and every capital project so Council will only do this when a project is particularly large, affects a particular group or does not fit with an existing funding policy or activity. Whenever Council resolves to consider a separate funding policy Council will consider the sources of funds outlined above, the Revenue and Financing Policy and complete a S101(3) assessment to determine a fair and equitable funding arrangement for the project.

Council will resolve the funding policy at the time the project is proposed in an Annual or Long-term Plan.

236 SUMMARY OF CAPITAL FUNDING SOURCES

Figure 2 - Summary of Capital Funding

POLICY CONSIDERATIONS WHEN DECIDING FUNDING SOURCES

KEY FUNDING CONSIDERATIONS The funding needs of Council are met from those mechanisms that Council considers appropriate, after considering the matters set out in Section 101(3) of the LGA. These matters are summarised in this section.

LGA SECTION 101 ANALYSIS Local Government Act Section 101 requires that Council develop a set of funding arrangements after considering the factors set out in LGA s101(3)(a). This section of the Policy discusses those requirements.

COMMUNITY WELL-BEING OUTCOMES (S101 (3)(A)(I)) Council considered it’s agreed Community Well-being Outcomes and developed a set of revenue and financing mechanisms to reflect that: (a) Council is proactive, transparent and accountable. (b) Core infrastructure, water, wastewater, solid waste, and roading endeavours to keep pace with changing demand. (c) Economic diversity and core economic strengths are encouraged in partnership with others, (d) Our environment is accessible, clean and safe and that our water, soil and air meets required standards.

THE BENEFIT PRINCIPLE (S101(3)(A)(II)) Council considered how the benefits from each activity are distributed to individuals, groups, or the community generally, using the following categories of benefit: (a) National benefit - benefits the nation and is public in nature. (b) District benefit - benefits the whole District and is public in nature. (c) Commercial benefit - benefits the commercial sector and has elements of both public and private benefit. (d) Community benefit - benefits a particular town, ward or other area and is public in nature.

237 (e) User benefit - benefits an identifiable individual, group, or community segment.

Council considered the benefit of each of its activities and sub activities, to reflect the national, district, commercial, community or user component. This analysis helped Council decide an appropriate funding source or sources for each activity and the percentage of revenue that Council will try and collect from those sources for each activity.

The following benefit categories were seen as the best fit.

GENERAL RATE FUNDING Council determined that following activities will be wholly funded by the General Rate/UAGC because the benefit is considered to be equal for the community in general, public in nature or have benefit nationally: (a) Leadership, (b) Public toilets, (c) Emergency management, (d) Grants, (e) i-Sites.

USER FUNDING Council determined that following activities will be funded by the user, because the benefit is considered to be solely or primarily private. (a) Water supply. (b) Wastewater. (c) Curbside collection.

MIXED RATE/USER FUNDING Council determined that following activities will be funded by a mix of Fees and Charges and General Rates/UAGC. This reflects the benefits received by both the community at large and the beneficiary/exacerbator. a) Resource management, b) Regulation, c) Waste management and minimisation, d) Recreation and community facilities (excluding public toilets), e) Environmental health and alcohol licensing, f) Community property, g) Community development (excluding grants).

Land Transport is funded by a mix of subsidies and targeted rates as Council considers there are benefits to the community and users. Council considers a targeted rate enables a higher level of transparency in funding allocation for this activity. The following activities are funded by a mixture of capital value rates on commercial and industrial properties and a Targeted Uniform Annual Rate on all properties as Council considers that there is more benefit to commercial and industrial properties, but that the District as a whole also benefits (under Economic Development). a) Regional tourism, b) Economic development, c) Business development.

The following activity is funded by a mix of the General Rates/UAGC and Urban Targeted Rates, as Council considers that there is more benefit to urban properties, but all properties benefit to some extent. a) Stormwater and flood protection.

PERIOD IN OR OVER WHICH THE BENEFITS ARE EXPECTED TO OCCUR (S101(3)(A)(III)) As part of its consideration of Intergenerational Equity and Decline in Service Potential, Council considered the period over which the benefit for each activity is expected to occur.

238

INTERGENERATIONAL EQUITY Section 101(3)(iii) of the LGA includes the consideration of intergenerational equity in terms of “the period in or over which those benefits are expected to occur”. This means that, for some projects that have a long life, the cost of the project should be allocated over the life of the asset. However, funding an asset with a life of (say) 70 years with a loan over that term may not be prudent, due to the large interest repayments. In those circumstances the term of the funding may be shorter than the life of the asset.

The Intergenerational Equity policy is based on Council’s ‘Decline in Service Potential’ (DISP) policy. The key activities where the principle of intergenerational equity applies to capital projects are as follows: (a) Solid Waste disposal, (b) Wastewater collection and treatment, (c) Stormwater, (d) Water extraction, treatment and distribution, (e) Land Transport, (f) Community Facilities, (g) Other capital projects.

Other functions where intergenerational equity may apply to capital projects include parks and reserves, district swimming pools, community halls, libraries, public toilets, cemeteries, social housing, and investment activities.

DECLINE IN SERVICE POTENTIAL (DISP) Council considers DISP to be a method of measuring the amount of ‘service capacity’ that is lost each year on key assets. For example, a water pipe slowly degrades over time to the point where it must be replaced. Each year, this reduction in life can be considered a reduction in service potential. As such, the concept of DISP is similar to depreciation. A number of methods for the treatment of DISP have already been established, based on accounting standards and government directives. Council has incorporated these and the following guidelines into the DISP Policy: (a) DISP on all assets will be calculated using the Depreciation Approach. (b) Funding DISP came into effect in the financial year commencing on 1 July 1999. (c) Expenditure of DISP funds can only be of a capital nature, such as new or replacement assets, or principal repayments. This is because of the requirement that all operating expenditure must be met out of operating revenues.

THE EXACERBATOR PRINCIPLE (S101(3)(A)(IV)) Council considered whether the activity was required to mitigate the effect of an individual or group and, where appropriate, charges fees, charges and fines.

COSTS AND BENEFITS (S101(3)(A)(V) LGA) Council considered the costs and benefits of funding its activities separately. Council considers that each activity and, in some cases, sub activities, should be accounted for separately as this is the most transparent method for funding capital and operating expenses of these activities. This allows more detailed understanding of expenditure, transparency and accountability and the ability of input from the community. This also allows for monitoring of each activity separately.

BALANCED BUDGET STATEMENT Section 100 of the LGA requires that Council’s projected operating revenues match its projected operating expenditures. Despite this, Council may choose not to fully fund operating expenditure in any particular year if Council can show that it is financially prudent to do so and where the deficit can be funded from operating surpluses in the immediately preceding or subsequent years. An operating deficit will only be budgeted when it would be beneficial to avoid significant fluctuations in rates, fees, or charges.

Council may choose to fund from the above sources more than is necessary to meet the operating expenditure in any particular year. Council will only budget for such an operating surplus if it is necessary to fund an operating deficit in the immediately preceding or following years, or to repay

239 debt. Council will have regard to forecast future debt levels when ascertaining whether it is prudent to budget for an operating surplus for debt repayment. Council has determined the proportion of operating expenditure to be funded from each of the sources listed above, and the method for apportioning rates and other charges. The details of the funding apportionment are set out in the Funding Sources Summary that is included in this policy.

The LGA requires Council to produce Funding Impact Statements (FIS), which provides details of the funding mechanisms to be used for each group of activities for each year covered by the LTP. These Funding Impact Statements show how Council intends to implement the Revenue and Financing Policy. It also shows the amounts to be collected from each available source for each group and how various rates are to be applied.

SUMMARY OF OPERATING REVENUE SOURCES Council has determined the proportion of operating expenditure to be funded from each of the sources listed below, and the method for apportioning rates and other charges. A summary of the funding sources for each of Council’s primary activities is presented in figure 3 below.

As can be seen, some activities are fully funded by the general or targeted rates and others have some level of other income, usually fees and charges.

These funding arrangements have been agreed by Council following an analysis of the District’s overall funding requirements.

ADDITIONAL INFORMATION This policy is presented in a high level short format. It was prepared following a detailed funding needs analysis for each activity as required by Local Government Act 2002, Section 101(3). The results of this analysis are included in the Revenue and Financing Policy Analysis document which is attached as Appendix One.

Further information relevant to this policy is contained in the Financial Strategy, Rating Policies and Funding Impact Statement contained within the Long-term Plan.

OVERALL FUNDING CONSIDERATION Council is required by S101(3)(b) to consider the overall impact of the allocation of liability for revenue needs on the current and future social, economic, environmental and cultural well-being of the community. This is a reference to the Purpose Statement of Local Government “...to promote the social, economic, environmental and cultural well-being of communities in the present and for the future.”

This brings the concept of “wellbeing” into the mix and allows Council, as a final measure, to modify the overall mix of funding in response to these considerations.

Council uses its choice of differentials and general and targeted rates, to achieve the most affordable outcomes for the community as a whole. Council recognises that the disparate nature of property values across the District result in wide variations in rating levels. For this reason, it consciously recovers a relatively high proportion of its income from the UAGC and other fixed rates.

SUMMARY OF FUNDING ARRANGEMENTS Following an analysis of the operating activities, Council has prepared a funding strategy to share the costs between the different funding streams, these include: (a) General Rates, (b) Targeted Rates, (c) Subsidies and Grants, (d) Fees and Charges, (e) Other income.

240 Figure 3 shown below graphically indicates the agreed operational funding arrangements for each of the different activities outlined in the proposed policy, these proportions / percentages are indicative only. This is presented in more detail in Appendix B.

SUMMARY OF OPERATING FUNDING

Figure 3 - Summary of Operating Funding Allocations

ADDITIONAL INFORMATION Appendix A presents a summary of the analysis undertaken for each activity. This identifies the community outcomes to which the activity contributes, the beneficiaries and/or exacerbators for whom the activity is undertaken and the rationale underpinning the final funding methods or arrangements adopted by Council.

Appendix B presents a consolidated summary of the funding arrangements.

Annotations

Date Description June 2006 Policy adopted as part of LTP Process June 2009 Policy amended and adopted as part of LTP Process June 2012 Policy amended and adopted as part of LTP Process June 2015 Policy amended and adopted as part of LTP Process June 2018 Policy amended and adopted as part of the LTP process June 2021 Policy amended and adopted as part of the LTP process

241 APPENDIX A - REVENUE AND FINANCING POLICY FUNDING NEEDS ANALYSIS

The purpose of this document is to set out how Council proposes to fund each of its activities. It has been prepared in accordance with the provisions of Section 101(3) of the Local Government Act 2002 (the Act).

Note: throughout this appendix references are made to legislative provisions. Unless stated otherwise, these references refer to the Local Government Act 2002.

INTRODUCTION The Act requires all councils to adopt a Revenue and Financing Policy showing how Council proposes to fund its various operating and capital expenditures, and more importantly, who will pay these and why.

Council must decide in accordance with S101(3) how each activity will be funded taking into consideration: • The community outcomes to which the activity primarily contributes; and • The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals; and • The period in or over which those benefits are expected to occur; and • The extent to which the actions or inaction of particular individuals or a group contribute to the need to undertake the activity; and • The costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities And must also consider: • The overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental and cultural well-being of the community as shown in the table below. • This analysis document is designed to show how Council has considered each of these requirements and how they relate to the final Revenue and Financing Policy.

The S101(3) funding analysis included in Appendix A identifies the arrangements Council proposes to apply to be able to budget for each activity. Frequently there is a mix of funding mechanisms including both general and targeted rates together with a range of fees and charges. In many instances, the final funding mix depends on the level of activity and the ability to recover costs from user charges.

COUNCIL’S S101(3) ANALYSIS FOR CAPITAL EXPENDITURE BY ACTIVITY Council will fund the cost of borrowing on the same basis as operating costs unless it resolves otherwise.

Generally, it is not practical to create separate funding policies for each and every capital project so Council will only do this when a project is particularly large, affects a particular group or does not fit with an existing funding policy or activity. Whenever Council resolves to consider a separate funding policy Council will consider the sources of funds outlined above, the Revenue and Financing Policy and complete a S101(3) assessment to determine a fair funding and equitable arrangement for the project.

Generally, Council will resolve the funding policy at the time the project is proposed in an Annual or Long-term Plan.

242 APPENDIX A – Section 101 (3) analysis of Operational Expenditure Activity Community Who Period of Whose Separate Funding Rationale Public Private Well-being Benefits Benefit Actions Outcomes – Creates Need Refer Appendix B *Notes: 1. The funding Source relate to council’s costs only, it excludes any subsidies that may be received from NZTA, Min of Health etc. 2. The split between public and private benefit is arranged in 10% bands where necessary. Recreation and Community Facilities Community • Safe, Healthy User, Ongoing Activity This activity is funded from User charging is feasible for buildings that can 100% 0% Buildings Communities Commerci benefits rates with limited user be rented or where usage for private purposes and Property and People al & current and funding is identifiable. Separate rating though is Community future users generally not appropriate as most of the (as buildings, properties are core to long term Council if well activities and the majority of the benefits are maintained, attributable to community as a whole. are a long- life asset). Cemeteries • Safe, Healthy User, Ongoing Users, There is a significant private This activity is of medium public benefit, but 50% 50% Communities Commerci Individuals & benefit funded by fees, but it mainly has user benefits, fees remain low due and People al & Community also includes some public to less use, but high maintenance costs. Community benefit funded from general rates. Community • Safe, Healthy User, Ongoing Users This activity is primarily Some user charges apply though Council also 90% 10% Halls Communities Commerci funded from the general considers affordability issues, and broader I I and People al & rate. community benefits, in allocating costs. 100% 0% • Vibrant and Community Diverse Living Parks and • Safe, Healthy User & Ongoing Actions of This activity is primarily The activity has general public benefit as all 90% 10% Reserves Communities Community individuals funded from rates with the public can use parks and reserves. There I I and People and groups do some user funding. is a small user component that can be 100% 0% • Vibrant and not contribute identified and targeted. % allocation based on Diverse Living in significant past actuals with reach. way to the need for the activity. Public • Safe, Healthy User & Ongoing Users, This activity is primarily Activity is of general public benefit to both 100% 0% Toilets Communities Community Individuals & funded from the general local community and visitors and is not and People Community rate. targeted at any specific groups. Also, it is not administratively feasible to charge user fees. Social • Safe, Healthy User & Ongoing Users, There is mainly private Separate funding is appropriate as tenants are 20% 80% Housing Communities Community Individuals benefit funded by fees, but it the primary beneficiary though affordability I I and People also includes some public 30% 70%

243 APPENDIX A – Section 101 (3) analysis of Operational Expenditure Activity Community Who Period of Whose Separate Funding Rationale Public Private Well-being Benefits Benefit Actions Outcomes – Creates Need Refer Appendix B benefit funded from general needs to be considered as social housing is rates. targeted at more vulnerable groups. Swimming • Safe, Healthy User & Ongoing Users, Mainly benefits users of the User fees are paid directly to the swimming 100% 0% Pools Communities Community Individuals facilities who can be pools therefore Council only contributes a and People identified and charged user balancing amount with is fully rate funded. • Vibrant and fees though there are Diverse Living broader community benefits. Community Support Community • Vibrant and User & Ongoing Users, There is mainly private These agency services are transactional and 0% 100% Developmen Diverse Living Community Individuals benefit funded by fees. service fees are transparent so the user can be I I t charged. 10% 90% - Agency Emergency • Safe, Healthy User, Ongoing The actions of This activity is primarily The activity benefits the community as a 100% 0% Management Communities Commerci individuals funded from the general whole. and People al & and groups rate. Community have little impact on this activity Community • Vibrant and Community Ongoing The actions of This activity is primarily The activity benefits the community as a 100% 0% Developmen Diverse Living individuals funded from the general whole. t and groups rate. - Grants have little impact on this activity Regional • Thriving and Commerci Ongoing The actions of Separate funding Benefits are expected to be higher for 60% 40% Tourism Prosperous al & individuals appropriate as primary businesses (who manage and run this activity I I Organisation Economy and Community and groups beneficiaries of activity can on behalf of Council) as tourist numbers 70% 30% Lifestyles have little be identified. Rating increase so a share of the costs are attributed • Vibrant and impact on this separately encourages to them. Percentage split is based on past Diverse Living activity accountability to key actuals. Broader flow‐on benefits to the • Our Places – beneficiaries and improves community also reflected in allocation to the Natural and transparency. community as a whole. Beautiful i-Sites • Thriving and National Ongoing Visitors have This activity is funded The activity benefits individuals and visitors so 80% 20% Prosperous an impact on from fees and the general fees and commissions can be I I rate. charged/recouped, and income generated from 70% 30%

244 APPENDIX A – Section 101 (3) analysis of Operational Expenditure Activity Community Who Period of Whose Separate Funding Rationale Public Private Well-being Benefits Benefit Actions Outcomes – Creates Need Refer Appendix B Economy and the need for sales. But there is also a community benefit Lifestyles the activity funded from rates. • Vibrant and Diverse Living • Our Places – Natural and Beautiful Library • Vibrant and User & Ongoing The actions of This activity is primarily A small amount of funding is collected from 90% 10% Services Diverse Living Community individuals funded from the general user charges recognizing the private benefits. I I and rate with some fee This needs to be kept at a reasonable level so 100% 0% groups have income that the facility is affordable and accessible to little impact on all. this activity

Land Transport Accelerated • Safe, Healthy User Ongoing Individuals or Separate funding can be The activity occurs where communities have 0% 100% and Communities District groups actions used for this category of shown willingness to pay for higher level of Enhanced and People Community do not activity as it is for identifiable service therefore, it is funded by an identifiable Developmen influence the projects that group defined by geographic area. Used as t need for the are funded by the necessary. activity. communities who benefit from higher level of service. Road, • Safe, Healthy User, Ongoing Road users Funded from a mixture The activity benefits all users of roads – locals, 100% Signage & Communities District & create the of NZTA subsidies and visitors and through traffic. As roads are open (Note: Bridges; and People Community need for the general rates. to all users the activity needs to be funded by this Footpaths, activity. community as a whole. Forestry sector charged funding Curbs and at a higher rate as considered a specific relates Channels & exacerbator. to the Street Council Furniture. share – funding is also provide d by NZTA)

245 APPENDIX A – Section 101 (3) analysis of Operational Expenditure Activity Community Who Period of Whose Separate Funding Rationale Public Private Well-being Benefits Benefit Actions Outcomes – Creates Need Refer Appendix B Leadership Business • Thriving and Commercial Ongoing Not applicable This activity is primarily This is a general public good activity and has 60% 40% Development Prosperous & funded from the general rate benefits for the community as a whole. I I Economy and Community 70% 30% Lifestyles Council, • A Strong Voice District Ongoing Not applicable This activity is primarily This is a general public good activity and has 100% 0% Committees, funded from the general rate benefits for the community as a whole. Mayor & Community Boards Economic • Thriving and Commercial Ongoing Not applicable Separate funding appropriate Activity focuses on strategic planning and catalyst 60% 40% Development Prosperous & as primary beneficiaries of activities to promote development. Direct benefits I I Economy and Community activity can be identified. to commercial sector, broader community, 70% 30% Lifestyles Rating separately families and individuals. Benefits are expected to encourages accountability to be higher for businesses. . Broader flow‐on key beneficiaries and benefits to the community also reflected in improves transparency. allocation to the community as a whole. Iwi • A Strong Voice District Ongoing Not applicable This activity is primarily This is a general public good activity and has 100% 0% Development funded from the general rate benefits for the community as a whole. Policy • A Strong Voice District Ongoing Not applicable This activity is primarily This is a general public good activity and has 100% 0% Development funded from the general rate benefits for the community as a whole. Youth • Vibrant and User, & Ongoing Individuals or This activity is primarily This activity attracts funding on a project by 10% 90% Development Diverse Living Community groups actions funded by subsidies but with project basis for example from Central I I do not some rate contributions Government from the Local Government Youth 0% 100% influence the Partnership fund. Council contributes through need for the allocating staff time to co‐ordination/liaison. activity Regulation Building • Safe, Healthy User, Ongoing Applicants for The activity is primarily Users should part fund their use of this activity, but 40% 60% Control Communities Commercial Building funded from fees and charges as the activity has a public benefit as well which I I and People & Consents with some “public good” rate benefits the district and the country as a whole, 50% 50% • Thriving and Community contribution. part of this activity should be funded from rates. Prosperous Economy and Lifestyles Compliance • Safe, Healthy User & Ongoing Individuals or The activity is primarily Users should part fund their use of this activity, but 65% 35% Communities Community businesses not funded from fees and charges as the activity has a public benefit as well which I I and People complying with with some “public good” rate benefits the district and the country as a whole, 75% 25% Council Bylaws contribution. part of this activity should be funded from rates.

246 APPENDIX A – Section 101 (3) analysis of Operational Expenditure Activity Community Who Period of Whose Separate Funding Rationale Public Private Well-being Benefits Benefit Actions Outcomes – Creates Need Refer Appendix B • Thriving and and other Prosperous regulations and Economy and dog owners Lifestyles who must comply with legislation / regulations. Environmenta • Safe, Healthy User, Ongoing Operators of The activity is partly funded Users should part fund their use of this activity, but 55% 45% l Health Communities Commercial premises that from fees and charges but as the activity has a public benefit as well which I I and People & must comply with a significant “public benefits the district and the country as a whole, 65% 35% Community with food good” rate contribution. part of this activity should be funded from rates. safety requirements or other regulation because they could pose a risk to public health and safety. Liquor • Safe, Healthy User, Ongoing Operators of The activity is partly funded Users should part fund their use of this activity, but 55% 45% Licencing Communities Commercial premises that from fees and charges but as the activity has a public benefit as well which I I and People & must comply with a significant “public benefits the district and the country as a whole, 65% 35% Community with sale and good” rate contribution part of this activity should be funded from rates. supply of alcohol laws. Resource • Safe, Healthy User, Ongoing Applicants The activity is partly funded Users should part fund their use of this activity, but 70% 30% Management Communities Commercial undertaking from fees and charges but as the activity has a public benefit as well which I I and People & development with a significant “public benefits the district and the country as a whole, 80% 20% • Thriving and Community that could have good” rate contribution. part of this activity should be funded from rates. Prosperous adverse Economy and environmental Lifestyles effects. • Our Places – Natural and Beautiful Solid Waste

247 APPENDIX A – Section 101 (3) analysis of Operational Expenditure Activity Community Who Period of Whose Separate Funding Rationale Public Private Well-being Benefits Benefit Actions Outcomes – Creates Need Refer Appendix B Curbside • Safe, Healthy User Ongoing The residents Fully funded by targeted The activity benefits the user therefore funded 0% 100% Collection Communities of urban rates. by targeted rates. and People communities • Thriving and who create Prosperous refuse. Economy and Lifestyles • Our Places – Natural and Beautiful Waste • Safe, Healthy User & Ongoing The residents Part funded by user charges There is a moderate public benefit to the activity 30% 70% Minimisation Communities Community who create but with “public good” rate but the user charge acknowledges that some I I – and People refuse contribution. members of the public and businesses use the 40% 60% Management • Thriving and activity more than others. and Facilities Prosperous Economy and Lifestyles • Our Places – Natural and Beautiful

Waters Stormwater • Safe, Healthy User & Ongoing Individuals, Part funded by local While the district as a whole will benefit from 45% 55% and Flood Communities Community households targeted rates but with stormwater and flood protection, the main I I Protection and People and “public good” General beneficiaries are the ratepayers in urban centres. 55% 45% • Thriving and businesses in Rate contribution Prosperous urban areas Economy and Lifestyles • Our Places – Natural and Beautiful Sewerage • Safe, Healthy User, Ongoing Users This activity is regarded as a Separate funding is appropriate this service 0% 100% Communities Commercial separate activity therefore is however Council now believes that as all I I and People & funded separately by targeted properties connected to any one of the reticulated 6% 94% • Thriving and Community rates and fees. Council is schemes receive a similar level of benefit it is Prosperous proposing to treat all appropriate that they pay similar levels of rates. sewerage schemes

248 APPENDIX A – Section 101 (3) analysis of Operational Expenditure Activity Community Who Period of Whose Separate Funding Rationale Public Private Well-being Benefits Benefit Actions Outcomes – Creates Need Refer Appendix B Economy and collectively as a single service Some Fees and Charges apply for connections Lifestyles rather than separately etc. • Our Places – funding each individual area. Natural and Beautiful Water Supply • Safe, Healthy User, Ongoing Users This activity is regarded as a Separate funding is appropriate this service 0% 100% Communities Commercial separate activity therefore is however Council now believes that as all I I and People & funded separately by targeted properties connected to any one of the reticulated 8% 92% • Thriving and Community rates and fees. Council treats schemes receive a similar level of benefit it is Prosperous all water schemes collectively appropriate that they pay similar levels of rates. Economy and as a single service rather than Some fees and charges apply for connections. Lifestyles separately funding each • Our Places – individual area. Natural and Beautiful

249 Appendix B - Detailed Activity Funding Arrangements Targeted General Activity Group - Activity User Charges Subsidies Rates Rates Recreation and Community Facilities Community Buildings and Property 0% 0% 0% 100% Cemeteries 50% 0% 0% 50% Community Halls 5% 0% 0% 95% Parks & Reserves 10% 0% 0% 90% Public Toilets 0% 0% 0% 100% Social Housing 70% 0% 0% 30% Swimming Pools 0% 0% 0% 100% Community Support Community Development ‐ Agency 100% 0% 0% 0% RTO 0% 0% 100% 0% Emergency Management 0% 0% 0% 100% Grants 0% 0% 0% 100% i-Sites 25% 0% 0% 75% Libraries 5% 0% 0% 95% Land Transport Accelerated & Enhanced Development 0% 0% 100% 0% Roads, signage & bridges etc. 0% 72% 0% 28% Leadership Business Development 0% 0% 100% 0%

Council, Committees, Mayor & Community Boards 0% 0% 0% 100%

Iwi Development 0% 0% 0% 100% Policy Development 0% 0% 0% 100% Economic Development 0% 0% 100% 0% Youth 0% 95% 0% 5%

Regulation Building Control 55% 0% 0% 45% Resource Management 25% 0% 0% 75% Compliance 70% 0% 0% 30% Environmental Health 40% 0% 0% 60% Liquor Licensing 40% 0% 0% 60% Solid Waste Curbside Collection 0% 0% 100% 0% Management and Facilities 60% 0% 20% 20% Waters Stormwater & Flood Protection 0% 0% 50% 50% Waste Water 6% 0% 94% 0% Water Supply 8% 0% 92% 0%

250

PART 4:

FINANCIALS

251 FUNDING IMPACT STATEMENT

INTRODUCTION

Council is required under Schedule 10(15) of the LGA to adopt a Funding Impact Statement. This Statement provides a summary of Council’s funding sources over the ten year period, as well as the detailed rates requirement for the 2021/22 financial year. The Statement represents the fiscal outcome from the Revenue and Financing Policy, which was reviewed by Council in accordance with the provisions of the Local Government Act.

Rates are assessed in accordance with the Local Government (Rating) Act 2002 (LGRA) on all rating units in the district on the basis of values as at 30 June 2021.

OBJECTIVES AND MEASURES

OBJECTIVES MEASURES • Rating income is raised with user charges to • Provide the income by rates received to meet meet, and not exceed, that required by Council’s Council’s LTP objectives, after user charges and forecast work programme. other income is first applied. • Council complies with the Balanced Budget • Ensure that all ratepayers pay their fair share requirement of Section 100 of the LGA. towards the cost of Council services. • Development of a Revenue and Financing Policy • Ensure that the incidence of rates is spread as adopted, with consultation, with each LTP. fairly as possible over the different ratepayer groups. • Setting of rates is in accordance with Council’s Revenue and Financing Policy and Funding • Ensure consistency in the charging of rates. Impact Statement. • The setting of rates is in accordance with the provisions of the LG(R)A and the LGA.

RATES REMISSION AND POSTPONEMENT

REMISSIONS Council has a Rates Remissions Policy developed under Section 102(3)(a) of the LGA and Section 85 of the LG(R)A. This can be viewed on Council’s website www.ruapehudc.govt.nz. Remissions categories include: • Charges on Contiguous Properties • Charges on Non-Contiguous Properties • Uninhabitable dwellings or properties affected by natural disasters • Remissions for Clubs and Societies • Remissions for Community Organisations • Remissions for New Subdivisions • Remissions of Rates on Land-locked Land • Remission of Penalties • Remission for Council Properties • Remissions for Extreme Financial Hardship • Remission of UAGC to Certain Separately Used or Inhabited Parts of Rating Units (SUIPS)

252 The value of these remissions is as follows (GST inclusive)

CATEGORY OF RATES REMISSION VALUE OF REMISSION (INCLUDING GST) $ Service Charge – Water 138,121 Service Charge – Wastewater 48,173 Service Charge – Solid Waste 35,595 General Rates 36,673 UAGC 320,996 Other 54,943 Total 634,501

POSTPONEMENT

Council has a Rates Postponement Policy developed under Section 110 of the LGA and Section 87 of the LG(R)A. This can be viewed on Council’s website at www.ruapehudc.govt.nz. The policy enables Council to postpone rates where Council is satisfied that financial hardship exists or would be caused by non- postponement of rates.

LEGISLATIVE REQUIREMENTS

The Local Government Act 2002 requires that Council include a Funding Impact Statement in each Long Term Plan and Annual Plan. This statement must include the following information for each year covered by the plan: • The sources of funding to be used by the local authority, • The amount of funds expected to be produced from each source, • How the funds are to be applied.

PROPOSED RATES FOR 2021/22

This portion of the Funding Impact Statement has been prepared in two parts. The first part outlines the rating methodologies and differentials which Council proposes to use to set the rates for the 2021-31 Long Term Plan. The second part outlines the proposed rates for the 2021/22 rating year.

Where a new rate is not proposed to be set in 2021/22 the schedule of rates will show this rate as NA.

DEFINITION OF SEPARATELY USED OR INHABITED PART OF A RATING UNIT

A separately used or inhabited part of a rating unit is any part of a rating unit that is or is able to be separately used or inhabited by the ratepayer or by any other person or body having a right to use or inhabit that part by virtue of a tenancy, lease, licence or other agreement.

Uniform or Fixed Rates will be applied according to the following principles: • Where a rating unit contains both a commercial operation and residential accommodation, two separately used parts of a rating unit are identified and each will be a SUIP. • A farming unit with one dwelling will be treated as one SUIP, with each additional dwelling counting as an additional SUIP of the rating unit. Each additional dwelling will be a SUIP • Where a single rating unit contains a number of shops or offices, each office or shop will be a SUIP. • Where a single rating unit contains a number of separately used or inhabited residential parts (block of flats), each separate unit will be counted as one SUIP. • A motel/hotel complex will not be treated on the basis of the number of rooms, but on the basis of a motel/hotel being a commercial operation. The motel/hotel complex will be one SUIP. However, should a residential occupancy be contained within the complex that would constitute an additional SUIP. Each residential occupancy in the motel/hotel complex will be an additional SUIP.

253 • Dwellings that are not fully self-contained will not be a SUIP. For a dwelling to be self- contained, it must be connected to water and wastewater services, and have facilities so that the person living or staying there does not have to share rooms such as a kitchen or bathroom. A kitchen is further defined as a room or area equipped with the intent for cooking. Any dwelling rented out separately to the main dwelling will be a SUIP.

GENERAL RATES

GENERAL RATE A General Rate set on the basis of Capital Value (CV) to fund general activities. This rate is set on a differential basis as described below and assessed on all rateable land. The General Rate differentials are based on the CV and land use as defined by Council’s Valuation Service Provider and included in the Rating Information Database. The differentials are as set out in the following table. (Refer Local Government (Rating) Act 2002, S13(2)(b) & S14, and Schedules 2(1&8) & 3(2))

GENERAL RATE DIFFERENTIALS Basis Differential All rating units other than hydro-electric properties with a 100% CV in excess of $50 million Hydro-electric properties with a CV in excess of $50 61% million

GENERAL RATE – DEFENCE LAND Defence Land is rated on Capital Value but, in accordance with Section 22 LGRA, the assessed rate will not exceed the amount that would have been charged if the District’s rate was calculated on the Land Value only. (Refer Local Government (Rating) Act 2002, S22)

UNIFORM ANNUAL GENERAL CHARGE (UAGC) A UAGC set on the basis of one charge assessed on every separately used or inhabited part (SUIP) of a rating unit. This rate has been set at a level designed to ensure that the total of the UAGC and uniform targeted rates, exclusive of those set for water supply or sewerage disposal do not exceed the allowable maximum of 30%.

(Refer Local Government (Rating) Act 2002, S15 & 21 and Schedule 3(7))

TARGETED RATES

LAND TRANSPORT-LAND TRANSPORT DIFFERENTIAL RATE A targeted rate set on the basis of Capital Value (CV) on all rating units in the District to fund land transport activity. This rate is set on a differential basis as described below. The Land Transport Rate differentials are based on the CV and use as defined by Council’s Valuation Service Provider and included in the Rating Information Database. The differentials are set out in the following table.

(Refer Local Government (Rating) Act 2002, S16(3)(a) and (4)(b) and Schedules 2(1&8) and Schedule 3(2))

LAND TRANSPORT RATE DIFFERENTIALS Differential Basis Basis General All rating units other than the following: 100% Hydro-electric Rating Units used for Hydro-electric purposes with a Capital Value in excess of 61% $50 million Forestry Rating Units used for exotic forestry with a Quotable Value Property Use Code of 300% FE

254 URBAN PERIPHERY ROADS

KAHA AND TAU STREET RESEALING A targeted rate set on the basis of a fixed amount assessed on every rating unit within the defined rating area to fund the resealing of Kaha and Tau Streets.

The defined Rating Area is as follows - All rating units with frontage on Kaha or Tau Streets, Rangataua (excluding the three rating units with frontage on a short section of Tau Street already sealed: valuation numbers 12765 198 00; 12765 222 00; 12765 223 00. (Refer Local Government (Rating) Act 2002, S16(3)(b) and (4)(a))

ECONOMIC DEVELOPMENT RATES

ECONOMIC DEVELOPMENT TARGETED RATE A targeted rate set on the basis of a fixed amount assessed on every SUIP in the District to fund Economic Development. (Refer Local Government (Rating) Act 2002, S16(3)(a) and (4)(a) and Schedule 3(7))

ECONOMIC DEVELOPMENT COMMERCIAL TARGETED RATE A targeted rate set on the basis of Capital Value (CV) assessed on every rating unit with Council’s Valuation Service Provider’s Category Codes C (Commercial) and I (Industrial) to fund Economic Development. (Refer Local Government (Rating) Act 2002, S16(3)(b) and (4)(a), and Schedule 3(2))

NON COMMERCIAL VISITOR ACCOMMODATION TARGETED RATE A Non Commercial Visitor Accommodation Rate set on the basis of a fixed amount per rating unit to fund services provided to the tourism sector. This rate will be assessed on any property that is advertised in any form as providing short term accommodation to the tourism sector. For clarity, this rate will be payable by any property (rating unit) that is advertised and used for short-term accommodation purposes, for example Bed & Breakfast (B&B), Book-a-Bach, Air B&Bs etc. This rate will not, however, be payable by any rating unit that is currently assessed as Economic Development – Commercial Targeted Rate. (Refer Local Government (Rating) Act 2002, Sections 16(3)(b) and (4)(a) and schedule 3(7))

SOLID WASTE RATES

SOLID WASTE – WASTE MINIMISATION MANAGEMENT AND FACILITIES.

A targeted rate set on the basis of a fixed amount assessed on every SUIP in the District to fund the cost of landfills, transfer stations and general recycling costs, plus all other refuse costs not included in the service charge for kerbside collection charged to individual households.

(Refer Local Government (Rating) Act 2002, Sections 16(3)(a) and (4)(a) & Schedule 3(7))

SOLID WASTE - KERBSIDE COLLECTION

A targeted rate set on the basis of a fixed amount assessed differentially on every SUIP to which Council provides the service, to fund the cost of kerbside (refuse and recycling) collection services. Note: Vacant land and land with minor improvements are deemed not to receive the service therefore are not subject to this rate.

Note: Refuse is collected for all SUIPS, whereas recycling is only collected from residential units.

SOLID WASTE - KERBSIDE COLLECTION RATE DIFFERENTIALS Basis Differential

General Differential All rating units within the rateable areas defined AND used for “Residential”[1] 100% purposes. Note: vacant land and land with minor improvements will not be liable for this rate

255 SOLID WASTE - KERBSIDE COLLECTION RATE DIFFERENTIALS Basis Differential Commercial Differential All rating units within the rateable areas defined AND used for any purpose 50% other than residential. Note: vacant land and land with minor improvements will not be liable for this rate

(Refer Local Government (Rating) Act 2002, Sections 16(3)(b) and (4)(b), Schedules 2 (1&5) & 3(7))

STORMWATER & FLOOD PROTECTION RATES A targeted rate set on the basis of a fixed amount assessed on every SUIP within the following urban communities to which stormwater and flood protection services are provided to fund these services. In this context, “are provided” means that the rating unit is within a water or sewerage supply area and is liable for any of those rates.

(Refer Local Government (Rating) Act 2002, Sections 16(3)(b) and (4)(a) & Schedule 3 Cl 7)

STORMWATER RATING AREAS

Taumarunui, Piriaka, Ohakune, Raetihi, Owhango, National Park, Rangataua, Waiouru, Kakahi

SEWERAGE

SEWERAGE SERVICE RATE Council has set a targeted rate assessed on a differential basis for any land which is connected or capable of connection1, either directly or indirectly, to any of the District’s public sewerage systems as follows.

SEWERAGE DIFFERENTIAL RATE Differential Description Basis General Use Land other than land used for Primary and Secondary Schools 100%

School Use Land used for Primary and Secondary Schools 30% (Refer Local Government (Rating) Act 2002, Section 16(3)(b) and (4)(b) and Schedules 2(1), 2(5), 3(7) & 3(12)

The rate is assessed per SUIP of a rating unit for general use land and per pan for schools.

PAN RATE (WATER CLOSET OR URINAL) Council has set a targeted rate assessed on any rating unit in the general use category as defined above that has more than two pans per SUIP and which is connected, either directly or indirectly, to any of the District’s public sewerage systems.2 The rate is assessed per pan. (Refer Local Government (Rating) Act 2002, Section 16(3)(b) and 16(4)(a) and Schedule 2(1), 2(5) & Schedule 3(12))

WATER

WATER RATE A targeted rate on the basis of an amount assessed on every SUIP that is connected or capable of connection 3, either directly or indirectly, to any of the District’s Public Water Supply Systems, set on a differential basis. (Local Government (Rating) Act 2002, Section 16(3)(b) and (4)(b) and Schedule 3(7))

1 Capable of connection - The rating unit is within 30m of sewer main and practicably serviceable in the opinion of Council. 2 In terms of the Local Government (Rating) Act 2002 Schedule 3(4) a rating unit used primarily as a residence for one household will be treated as having only one water closet or urinal. 3 Capable of connection - The rating unit is within 100m of water main and practicably serviceable in the opinion of Council.

256 DIFFERENTIAL WATER RATES DESCRIPTION BASIS General Use All Rating Units other than those defined as Extraordinary Use 100%

Extraordinary Use Rating Units are deemed extraordinary by land use, Councils 120% Water Bylaw, or agreement with Council.

(Local Government (Rating) Act 2002, Section 16(3)(b) and (4)(b) and Schedules 2(1) & (5) & 3(7)

WATER BY METER CHARGES (N.B. WATER BY METER CHARGES ARE NOT RATES PURSUANT TO THE LGRA) Users connected to any Council water supply where the supply is recorded through a water meter will be assessed the Water Differential Rate, as outlined above. In addition, they will be charged for any water consumed according to the prevailing Schedule of Fees and Charges.

LUMP SUM CONTRIBUTIONS Council is not seeking any lump sum contributions in respect of any targeted rates. (Local Government Act 2002, Schedule 10 Clause 15(4)(e)).

DUE DATES FOR PAYMENT OF RATES Council resolved that the rates for 2021/22 are payable in four equal instalments, on the dates set out below.

DISCOUNT A discount of 3% on all current year’s rates will be granted for prompt payment if the rates for the year ending 30 June 2022 are paid in full by 20 August 2021, on condition that no rates remain unpaid from previous years.

PENALTIES A penalty of 10% will be added to any amount of an instalment of rates remaining unpaid after the relevant due date and will be added on the dates set out in the table below:

Instalment Due Date Penalty Date 1 20 August 2021 25 August 2021 2 22 November 2021 25 November 2021 3 21 February 2022 24 February 2022 4 20 May 2022 25 May 2022

A further penalty of 10% will be added to any rates from previous years that remain unpaid on 1 July 2021. The penalty will be applied on 12 July 2021.

A further penalty of 10% will be added to any amount of rates to which a penalty has been added under the above paragraph that remain unpaid on 13 January 2022. The penalty will be added on 14 January 2022.

Council delegates authority to the Executive Manager Finance and Strategy, to apply penalties on unpaid rates. Remission of penalties will be considered according to Council’s Remission of Penalties Policy, which can be found on Council’s website: www.ruapehudc.govt.nz.

257 OTHER RATING POLICY STATEMENT

PROJECTED NUMBER OF RATING UNITS Local Government Act 2002 Schedule 10 Clause 15A requires Council to state for each year covered by the Plan, the projected number of rating units within the district or region of the local authority at the end of the preceding financial year.

For the purposes of the 2021 – 2031 Long Term Plan Council has assumed that there will be some growth in the number of rating units

The following table shows the growth assumptions for each of the years covered by the plan. YEAR RATING UNITS 2021/22 8984 2022/23 8995 2023/24 9005 2024/25 9016 2025/26 9027 2026/27 9038 2027/28 9049 2028/29 9060 2029/30 9070 2030/31 9081

258 SCHEDULE OF RATES FOR 2021/22

PLEASE NOTE ALL RATES INCLUSIVE GST. Rate Basis of Differential Rates 2021/22 Assessment (as per Rate GST Total Rate LG(R)A incl. GST incl. schedule 2 GENERAL RATES

Uniform Annual General Charge Per SUIP4 - $658.45 $5,796,360 General Rate – General Differential Capital Value 1 & 8 $0.00175804 $8,858,849 General Rate – Hydro Electrical Differential Capital Value 1 & 8 $0.00106799 $341,745

General Rate – Defence Land Land Value 1 $0.00075807 $155,450 TARGETED RATES Land Transport General Capital Value 1 $0.00075872 $3,725,320 Hydro Electrical Capital Value 1 & 8 $0.00046100 $147,516 Forestry Capital Value 1 $0.00226722 $295,960 Kaha and Tau Street Resealing Per rating unit $124.00 $3,968 Solid Waste Solid Waste - Kerbside Collection Residential Per SUIP 1 $65.16 $274,333 Commercial Per SUIP 1 $33.00 $17,920 Solid Waste Charge Per SUIP - $72.99 $642,601 Stormwater - Flood Protection Stormwater/Flood Protection Urban Per SUIP $96.29 $559,383 Wastewater District Wide Sewerage Rate General use (Inclusive of 2 pans) Per SUIP 1 & 5 $532.30 $2,516,166 School Use Per Pan 1 & 5 $159.69 $38,166 District Wide Additional Pan Rate General Use Per pan in excess of 2 pans per SUIP Per Pan - $266.15 $383,520

Water District Wide Water Rate Connected or capable of connection Per SUIP 1 & 5 $780.34 $4,536,139 Extra-Ordinary Per SUIP 1 & 5 $936.41 $34,647 Economic Development Rates Economic Development Rate Per SUIP - $52.18 $459,366 Economic Development Commercial Rate Capital Value - $0.00124967 $410,644

Non-Commercial Visitor Accommodation Targeted Rate Per rating unit - $300.00 $156,600

4 Separately Used or Inhabited Part of a rating unit

259 RATING EXAMPLES Set out below are examples of the rates drawn from a range of land uses and property land values. Additionally, examples are shown for a range of residential properties drawn from a number of communities across the District.

Includes GST 2020/21 2021/22 2021/22 Rate $ % Capital Value Capital Value Requirement Change Change Kakahi Commercial Medium 72,000 92,000 1,130.13 41 3.79% National Park Commercial High 255,000 405,000 3,717.95 366 10.91% National Park Commercial Medium 285,000 375,000 5,265.21 165 3.23% National Park Commercial Low 120,000 155,000 2,776.34 78 2.88% Ohakune Commercial Medium 205,000 255,000 3,185.99 12 0.38% Ohakune Commercial High 350,000 460,000 3,958.11 82 2.12% Ohakune Commercial Low 111,000 190,000 2,908.17 253 9.53% Ohura Commercial Medium 60,000 65,000 1,727.55 26 1.52% Owhango Commercial Medium 100,000 135,000 2,168.72 81 3.90% Owhango Commercial High 250,000 330,000 2,903.17 90 3.19% Pipiriki Commercial Medium 179,500 249,000 3,258.51 183 5.94% Raetihi Commercial Medium 149,000 225,000 3,073.00 170 5.86% Raetihi Commercial High 450,000 530,000 4,910.12 -119 -2.36% Raetihi Commercial Low 102,000 160,000 2,828.18 153 5.71% Rangataua Commercial Medium 200,000 320,000 2,282.73 180 8.56% Taumarunui Commercial Medium 142,000 185,000 2,922.34 53 1.86% Taumarunui Commercial High 3,220,000 3,550,000 17,725.57 -2100 -10.59% Taumarunui Commercial Low 69,000 85,000 2,545.70 30 1.19% Waiouru Commercial Medium 250,000 260,000 4,567.72 -172 -3.64% Waiouru Commercial High 870,000 930,000 7,621.73 -568 -6.93% Waiouru Commercial Low 160,000 155,000 2,776.34 -116 -4.01% Kakahi Residential Low 69,000 130,000 1,272.25 97 8.27% Kakahi Residential Medium 150,000 235,000 1,536.51 106 7.41% National Park Residential Medium 220,000 330,000 3,023.08 211 7.52% National Park Residential High 280,000 420,000 3,549.59 349 10.89% National Park Residential High 275,000 415,000 3,237.01 252 8.44% National Park Residential Low 185,000 280,000 3,197.24 496 18.36% Ohakune Residential Medium 215,000 355,000 3,151.16 229 7.84% Ohakune Residential High 285,000 435,000 3,352.50 210 6.67% Ohakune Residential Low 145,000 235,000 2,849.15 148 5.48% Ohakune Residential Medium 190,000 325,000 3,375.66 332 10.93% Ohura Residential Medium 75,000 103,000 1,823.19 74 4.24% Ohura Residential High 110,000 146,000 1,931.41 72 3.87% Ohura Residential Low 40,000 60,000 1,714.97 76 4.66% Owhango Residential Medium 175,000 265,000 2,327.19 172 7.97% Owhango Residential High 250,000 375,000 2,604.04 212 8.87% Owhango Residential Low 144,000 215,000 2,201.36 144 6.99% Pipiriki Residential Medium 96,500 163,000 1,726.15 167 10.71% Pipiriki Residential High 143,500 213,000 1,851.99 145 8.47% Pipiriki Residential Low 89,500 154,000 1,703.50 166 10.82% Raetihi Residential Medium 115,000 235,000 2,849.15 243 9.30% Raetihi Residential High 141,000 250,000 2,886.90 198 7.37% Raetihi Residential Low 78,000 150,000 2,635.22 145 5.84% Rangataua Residential Medium 165,000 270,000 2,156.89 165 8.26%

260 Includes GST 2020/21 2021/22 2021/22 Rate $ % Capital Value Capital Value Requirement Change Change Rangataua Residential High 220,000 345,000 2,345.65 180 8.31% Rangataua Residential Low 110,000 205,000 1,993.30 174 9.59% Taumarunui Residential Medium 115,000 190,000 2,735.90 129 4.96% Taumarunui Residential High 160,000 245,000 2,874.32 126 4.58% Taumarunui Residential Low 81,000 146,000 2,625.16 126 5.03% Waiouru Residential Medium 149,000 230,000 2,836.57 123 4.52% Waiouru Residential High 190,000 275,000 2,949.82 107 3.75% Waiouru Residential Low 128,000 210,000 2,786.23 139 5.23% Kakahi Rural Medium 940,000 1,155,000 3,690.48 -15 -0.40% Kakahi Rural High 4,990,000 5,510,000 18,978.45 -1822 -8.76% Kakahi Rural Low 870,000 1,120,000 3,602.40 118 3.39% National Park Rural Medium 380,000 485,000 2,004.25 65 3.37% National Park Rural High 770,000 1,010,000 2,541.93 113 4.67% National Park Rural Low 119,000 155,000 1,173.72 58 5.20% Ohakune Rural Medium 1,427,000 1,844,000 6,204.88 192 3.19% Ohakune Rural High 2,490,000 3,220,000 8,887.60 294 3.42% Ohakune Rural Low 723,000 933,000 3131.76 111 3.68% Ohura Rural Medium 920,000 1,180,000 3,753.40 111 3.06% Ohura Rural High 2,880,000 3,650,000 10,753.43 189 1.79% Ohura Rural Low 268,000 395,000 2,558.09 200 8.50% Owhango Rural Medium 485,000 627,000 2,361.63 92 4.03% Owhango Rural High 4,460,000 4,810,000 17,086.39 -1791 -9.49% Owhango Rural Low 710,000 900,000 3,832.33 112 3.02% Pipiriki Rural Medium 550,000 710,000 2,570.52 95 3.86% Pipiriki Rural High 2,360,000 3,030,000 8,409.42 226 2.76% Pipiriki Rural Low 265,000 340,000 1,639.32 63 4.01% Raetihi Rural Medium 1,920,000 2,460,000 6,974.86 179 2.63% Raetihi Rural High 5,300,000 6,870,000 18,073.80 617 3.54% Raetihi Rural Low 371,500 471,000 1,185.40 14 1.17% Rangataua Rural Medium 710,000 890,000 3,023.54 44 1.47% Rangataua Rural High 1,471,000 1,910,000 6,370.98 219 3.56% Rangataua Rural Low 590,000 590,000 2,268.51 -333 -12.79% Taumarunui Rural Medium 581,000 745,000 2,658.61 86 3.33% Taumarunui Rural High 1,680,000 2,130,000 6,144.33 105 1.74% Taumarunui Rural Low 245,000 330,000 1,614.15 101 6.68% Waiouru Rural Medium 750,000 915,000 3,086.46 -19 -0.62% Waiouru Rural High 1,171,000 1,451,000 4,435.45 2 0.04% Waiouru Rural Low 206,000 261,000 656.88 7 1.10%

261 RATING BASE INFORMATION District numbers at 14 June 2021. Based on previous increases it is expected that this number will change before 30 June 2021.

NUMBER OF RATING UNITS TOTAL CAPITAL VALUE OF TOTAL LAND VALUE OF RATING UNITS (GROSS) RATING UNITS (GROSS) (GROSS) 9,979 6,220,275,850 3,467,030,250

BENCHMARKS BENCHMARKS QUANTIFIED LIMIT PLANNED MET Rates affordability - Income 25,594 25,526 Yes Rates affordability - Increase 5.20% 4.92% Yes Debt affordability 51,052 44,190 Yes Balanced budget 100% 136% Yes Essential services 100% 262% Yes Debt servicing 10.00% 1.19% Yes

262 Financial Statements

STATEMENT OF ACCOUNTING POLICIES

REPORTING ENTITY Ruapehu District Council (the Council or RDC) is a territorial local authority established under the Local Government Act 2002 (LGA) and is domiciled and operates in New Zealand. The relevant legislation governing the Council’s operations includes the LGA and the Local Government (Rating) Act 2002.

The Council and Group provide local infrastructure, local public services, and perform regulatory functions. The Council does not operate to make a financial return. The Council has designated itself and the group as public benefit entities (PBEs) for financial reporting purposes.

The group consists of: • The ultimate parent, Ruapehu District Council. • RDC Holdings Ltd (100% owned subsidiary) which is non-trading. • Manawatū-Wanganui LASS Ltd (14.29%) which is equity accounted (an associate). • Visit Ruapehu Limited (100% owned Council Controlled Organisation) CCO.

All subsidiaries and associated entities are established and domiciled in New Zealand.

The prospective financial statements reflect the consolidated results for RDC and group. The only subsidiary of Council (RDC Holdings Limited) is non-active and has no revenue, expenditure, assets or liabilities.

Visit Ruapehu Limited was incorporated on 23 August 2019, as a Council Controlled Organisation (CCO) with Ruapehu District Council being the 100% owner. This new organisation replaced the Ruapehu Regional Tourism Organisation (RTO) Trust, which was operating from 2009 until it was wound up by a Trustees resolution on 17 October 2019 under a Deed of Confirmation. The assets were transferred to Visit Ruapehu Limited, free of all charges and encumbrances and all the Trusts debts and liabilities were paid.

The Council and Group provide local infrastructure, local public services, and perform regulatory functions. The Council does not operate to make a financial return. The Council has designated itself and the group as public benefit entities (PBEs) for financial reporting purposes.

The financial information contained within these documents is prospective financial information in terms of Financial Reporting Standard 42 Prospective Financial Statements (PBE). The purpose for which this has been prepared is to enable the public to participate in decision-making processes as to the services provided by Council over the next ten years and to provide broad accountability mechanism of Council to the community. The financial information in the Long term Plan may not be appropriate for purposes other than those described.

STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION The reporting period for these prospective financial statements of Council is for the years 2021-2031 ending on 30 June each year. These prospective financial statement have been prepared on the going concern basis, and in accordance with the requirements of the Local Government Act 2002, which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP). Notwithstanding the above, prospective financial statements are a forecast based on best available information and assumptions at the time of preparation, and so it must be cautioned that actual results could differ materially from those presented here due to inherent future uncertainties.

Prospective financial statements are presented in New Zealand dollars with all values rounded to the nearest thousand dollars ($000), and have been prepared in accordance with Tier 1 PBE FRS 42, and using accounting policies that are consistent with those adopted by the Council in preparing financial statements. The budget figures are those approved by the Council, and this information is intended to be used to inform the reader of Council’s forecast financial activity and position over the next 10 years, and may not be suitable for purposes outside this scope. Council authorised the prospective financial statements on 23 June 2021.

Council and its management accepts responsibility for the preparation of its prospective financial statements, including appropriateness of assumptions underlying the prospective financial statements and all other

263 required disclosures. Actual financial results have been incorporated to the extent that they affect the opening forecast prospective statement of financial position as at 1 July 2021. Council does not intend to update the prospective financial statements subsequent to presentation.

These prospective financial statements have been prepared in accordance with Tier 1 PBE accounting standards that have been issued but are not yet effective are as follows;

FINANCIAL INSTRUMENTS In March 2019 the XRB issued a new accounting standard, PBE IPSAS 41 Financial Instruments. This standard supersedes PBE IFRS 9 Financial Instruments and PBE IPSAS 29 Financial Instruments: Recognition and Measurement. PBE IFRS 9 is effective for annual periods beginning on or after 1 January 2021, with early adoption permitted. The main changes under PBE IPSAS 41 which will provide users of financial statements with more useful information are as follows: • Introduces a new classification and measurement model for financial assets that considers the characteristics of the asset’s cash flows and the objective for which the asset is held. This could result in some instruments moving from amortised cost accounting to fair value accounting, or vice versa. • Applies a forward-looking expected credit loss model that is applicable to all financial instruments subject to impairment testing. • Introduces an improved hedge accounting model that broadens the hedging arrangements in scope of the guidance. The model develops a strong link between an entity’s risk management strategies and the accounting treatment for instruments held as part of the risk management strategy. Entities that adopt PBE IPSAS 41 have a choice of either adopting the new hedging model of PBE IPSAS 41 or continuing to apply the hedging model of PBE IPSAS 29.

Previously there was some uncertainty about the requirements relating to the recognition of an impairment loss when an item of revalued property, plant and equipment was damaged or no longer available for use. The issue was whether the entire class of assets needed to be revalued when an impairment loss on damaged/unusable property, plant and equipment was recognised.

This standard removes the uncertainty by including revalued property, plant and equipment and revalued intangible assets in the scope of the impairment standards.

Council will apply this standard in preparing its year ending 30 June 2023 financial statements, which is the second year of the 2021-31 LTP.

Council does not intend to early adopt this new standard and it should be noted that the financial forecast for the first year of the LTP 2021-31 has been prepared under PBE IPSAS 29. Council has performed an assessment of the impact of PBE IPSAS 41 at account level and concluded that there would not be a material effect on the financial forecasts for the remaining years of the LTP and therefore, due to the immaterial value, Council has not applied the new standard to years 2 to 10 of the LTP.

Service Performance Reporting (PBE FRS 48) This standard is mandatory for annual reporting periods beginning on or after 1 January 2021. There has been no PBE Standard dealing solely with service performance reporting. This Standard establishes new requirements for public benefit entities (PBEs) to select and present service performance information.

Council believes the application of PBE FRS 48 will not have any significant impact on its statement of performance as Council has well established service performance reporting processes.

PRESENTATION CURRENCY AND ROUNDING The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).

PLANNING ASSUMPTIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of prospective financial statements requires management to make judgement, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expense. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. The significant planning and

264 forecasting assumptions with risks underlying the financial estimates are identified in Council’s Long Term Plan 2021-31 pages 95–148.

Additionally, Council also applies a number of accounting policies and treatments to this forecast, and a summary of the significant accounting policies can be found in Council’s Long Term Plan 2021-31 pages 236-277.

BASIS OF CONSOLIDATION The consolidated prospective financial statements have been prepared by adding together like items of assets, liabilities, equity, revenue, and expenses of entities of the Group on a line by line basis. All intragroup balances, transactions, revenue and expenses are eliminated on consolidation.

CCOs and subsidiaries are entities controlled by the group. Control is achieved when the group has the power to govern their financial and operating policies. In order to establish control, the controlling entity presently have exercisable power to govern decision making to be able to benefit from the activities of the other entity.

Consolidation of a subsidiary begins when the group obtains control over the subsidiary and ceases when the group loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statements from the date the group gains control until the date the group ceases to control the subsidiary. The accounting policies of controlled entities are consistent with the policies adopted by the controlling entity, or if not, adjustments are made to the consolidated financial statements to bring alignment of subsidiaries with the group’s accounting policies. All intra-group balances, transactions, income, expenses, and cash flows relating to transactions between members of the group are eliminated in full on consolidation.

The substantive subsidiary within the group is Visit Ruapehu Limited. Visit Ruapehu Limited was incorporated on 23 August 2019, as a Council Controlled Organisation (CCO) with Ruapehu District Council being the 100% owner. This new organisation replaced the Ruapehu Regional Tourism Organisation (RTO) Trust, which was operating from 2009 until it was wound up by a Trustees resolution on 17 October 2019 under a Deed of Confirmation. The assets were transferred to Visit Ruapehu Limited, free of all charges and encumbrances and all the Trusts debts and liabilities were paid. Its principal activities involve the development and marketing of tourism in the Ruapehu District.

The following parts of the group are exempt activities: • RDC Holdings Ltd (100% owned subsidiary) which is non-trading. • Manawatū-Whanganui LASS Ltd (14.29%) which, is equity accounted (an associate) • Visit Ruapehu Limited (100% owned Council Controlled Organisation) CCO.

BASIS OF REPORTING The New Zealand Accounting Standards Board issued these standards to incorporate the equivalent standards issued by the International Public Sector Accounting Standards Board into PBE Standards. These standards replace PBE IPSAS 6 Consolidated and Separate Financial Statements, PBE IPSAS 7 Investments in Associates and PBE IPSAS 8 Interests in Joint Ventures. The group adopted these standards with effect from 1 July 2019. The key changes introduced by the new standards and the expected impact on the group are as follows: (a) Control: The new standards introduce an amended definition of control including extensive guidance on this definition, which if applicable, result in consolidation of entities that are not owned by virtue of shareholding. The adoption of new standards has not resulted in the consolidation of additional entities. (b) Investment entities: The standards introduce the concept of an “investment entity”. They exempt investment entities from consolidating controlled entities and instead require investment entities to recognise controlled entities at fair value through surplus or deficit. These requirements do not apply to the group, as neither the council nor any of its controlled entities meet the definition of an investment entity. (c) Joint arrangements: PBE IPSAS 37 introduces a new classification of joint arrangements, sets out the accounting requirements for each type of arrangement (joint operations and joint ventures), and removes the option of using the proportionate consolidation method. These requirements do not apply to the group, none of the councils controlled entities meet the definition of an joint arrangement.

265 (d) Disclosures of interests in other entities: The standards require PBEs to disclose information of their interests in other entities, including some additional disclosures that are not currently required under PBE IPSAS 6, 7 and 8. This will result in additional disclosures for the group regarding the group’s controlled entities, associates and joint arrangements.

INVESTMENT IN SUBSIDIARIES Investment in subsidiaries includes the investment in CCOs. These investments are carried at cost less any accumulated impairment.

INVESTMENTS IN ASSOCIATES Investments in associates are accounted for using the equity method in the group and the council financial statements. The investment is initially recognised at cost and the carrying amount is increased or decreased to recognise the share of the surplus or deficit of the associate or joint venture after the date of acquisition. Distributions received reduce the carrying amount of the investment. Where necessary, adjustments are made to the financial statements of associates and joint ventures to bring their accounting policies in line with the group.

REVENUE Revenue is measured at fair value of consideration received or receivable. Revenue may be derived from either exchange or non-exchange transactions.

EXCHANGE TRANSACTIONS Exchange transactions are transactions where Council receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange.

Revenue derived through the provision of services to third parties in a commercial manner is recognised in proportion to the stage of completion at balance date.

Revenue from asset management services is recognised when provided to the customer. Interest revenue is recognised using the effective interest method. Interest revenue on an impaired financial asset is recognised using the original effective interest rate.

Dividends are recognised when the right to receive payment has been established. When dividends are declared from pre-acquisition surpluses, the dividend is deducted from the cost of the investment.

NON-EXCHANGE TRANSACTIONS Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, Council either receives value from or gives value to another entity without directly giving or receiving approximately equal value in exchange or where the value given or received is not able to be accurately measured. This includes transactions for activities which are subsidised through rates.

An inflow of resources from a non-exchange transaction, whether this be an asset or revenue, is only recognised if a liability is not also recognised for that particular asset or revenue.

A liability is only recognised to the extent that the present obligations have not been satisfied. A liability in respect of a transferred asset is recognised only when the transferred asset is subject to a condition, such as a condition for the asset to be consumed as specified and / or that future economic benefits or service potential must be returned to the owner.

The specific accounting policies relating to significant revenue items follow.

RATES REVENUE The following policies for rates have been applied: • General rates and targeted rates (excluding water-by-meter), are recognised at the start of the financial year to which the rates resolution relates. They are recognised at the amounts due. The Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue. • Rates arising from late payment penalties are recognised as revenue when rates become overdue. • Revenue from water-by-meter rates is recognised on an accrual basis based on usage. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis.

266 • Rates remissions are recognised as a reduction of rates revenue when the Council has received an application that satisfies its rates remission policy.

DEVELOPMENT AND FINANCIAL CONTRIBUTIONS Development and financial contributions are recognised as revenue when the Council provides, or is able to provide, the service for which the contribution was charged. Otherwise, development and financial contributions are recognised as liabilities until such time as the Council provides, or is able to provide, the service.

NEW ZEALAND TRANSPORT AGENCY ROADING SUBSIDIES The Council receives funding assistance from the New Zealand Transport Agency (NZTA), which subsidises part of the costs of maintenance and capital expenditure on the local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled.

OTHER GRANTS RECEIVED Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied.

BUILDING AND RESOURCE CONSENT REVENUE Fees and charges for building and resource consent services are recognised on a percentage completion basis with reference to the recoverable costs incurred at balance date.

LANDFILL FEES Fees for disposing of waste at the Council’s landfill are recognised as waste is disposed by users.

267 INFRINGEMENT FEES AND FINES Infringement fees and fines mostly relate to traffic and parking infringements and are recognised when the infringement notice is issued. The fair value of this revenue is determined based on the probability of collecting fines, which is estimated by considering the collection history of fines.

VESTED OR DONATED PHYSICAL ASSETS For assets received for no or nominal consideration, the asset is recognised at its fair value when the Council obtains control of the asset. The fair value of the asset is recognised as revenue, unless there is a use or return condition attached to the asset.

The fair value of vested or donated assets is usually determined by reference to the cost of constructing the asset. For assets received from property developments, the fair value is based on construction price information provided by the property developer.

For long-lived assets that must be used for a specific use (e.g. land must be used as a recreation reserve), the Council immediately recognises the fair value of the asset as revenue. A liability is recognised only if Council expects that it will need to return or pass the asset to another party.

DONATED AND BEQUEATHED FINANCIAL ASSETS Donated and bequeathed financial assets are recognised as revenue unless there are substantive use or return conditions. A liability is recorded if there are substantive use or return conditions and the liability released to revenue as the conditions are met (e.g. as the funds are spent for the nominated purpose).

LIABILITIES

INCOME IN ADVANCE Income in Advance is predominantly made up of Central Government Grants for work that is yet to be completed and from rates and dog registrations paid in advance, these are non-exchange transactions.

BORROWING COSTS In accordance with PBE IPSAS 5 Borrowing Costs, all borrowing costs are recognised as an expense in the period in which they are incurred.

GRANT EXPENDITURE

Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received.

Discretionary grants are those grants where the Council has no obligation to award on receipt of the grant application and are recognised as expenditure when approved by the Council and the approval has been communicated to the applicant. The Council’s grants awarded have no substantive conditions attached.

LEASES

OPERATING LEASES An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset.

Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.

Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term.

268 CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.

RECEIVABLES

Receivables are recorded at their face value, less any provision for impairment.

OTHER FINANCIAL ASSETS

Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit.

Purchases and sales of financial assets are recognised on trade-date, the date on which the Council and group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council and group has transferred substantially all the risks and rewards of ownership.

Financial assets are classified into the following categories for the purpose of measurement: • fair value through surplus or deficit; • loans and receivables; • held-to-maturity investments; and • fair value through other comprehensive revenue and expense.

The classification of a financial asset depends on the purpose for which the instrument was acquired.

FINANCIAL ASSETS AT FAIR VALUE THROUGH SURPLUS OR DEFICIT Financial assets at fair value through surplus or deficit include financial assets held for trading or is designated as such on initial recognition.

Financial assets acquired principally for the purpose of selling in the short-term or part of a portfolio classified as held for trading are classified as a current asset.

After initial recognition, financial assets in this category are measured at their fair values with gains or losses on re-measurement recognised in the surplus or deficit.

LOANS AND RECEIVABLES Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets.

After initial recognition, they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

HELD-TO-MATURITY INVESTMENTS Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities and there is the positive intention and ability to hold to maturity. They are included in current assets, except for maturities greater than 12 months after balance date, which are included in non-current assets.

After initial recognition they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

269 FAIR VALUE THROUGH OTHER COMPREHENSIVE REVENUE AND EXPENSE Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in non-current assets unless Council intends to dispose of, or realise, the investment within 12 months of balance date.

The Council and group includes in this category: • Investments that it intends to hold long-term but which may be realised before maturity; and • Shareholdings that it holds for strategic purposes.

These investments are measured at their fair value, with gains and losses recognised in other comprehensive revenue and expense, except for impairment losses, which are recognised in the surplus or deficit. On de- recognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit.

IMPAIRMENT OF FINANCIAL ASSETS

Financial assets are assessed for evidence of impairment at each balance date. Impairment losses are recognised in the surplus or deficit.

LOANS AND RECEIVABLES AND HELD-TO-MATURITY INVESTMENTS Impairment is established when there is evidence that the Council and group will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership, or liquidation and default in payments are indicators that the asset is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due). Impairment in term deposits, local authority stock, government bonds, and community loans, are recognised directly against the instrument’s carrying amount.

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE REVENUE AND EXPENSE For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments, are objective indicators that the asset is impaired.

If impairment evidence exists for investments at fair value through other comprehensive revenue and expense, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit) recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit. Equity instrument impairment losses recognised in the surplus or deficit are not reversed through the surplus or deficit.

If in a subsequent period the fair value of a debt instrument increases, and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit.

INVENTORY

Inventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at cost (using the FIFO method), adjusted, when applicable, for any loss of service potential.

Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition. Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost (using the FIFO method) and net realisable value. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down.

270 ASSETS HELD FOR SALE

Assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment losses for write-downs of assets held for sale are recognised in the surplus or deficit. Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised.

Assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of: • Operational Assets – These include land, buildings, parks and reserves improvements, library books, plant vehicles, computer equipment and office equipment. • Restricted Assets – Restricted assets are mainly parks and reserves owned by Council that provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions. • Infrastructure Assets – Infrastructure assets are the fixed utility systems owned by Council. Each asset class includes all items that are required for the network to function. For example, sewer reticulation includes reticulation piping and sewer pump stations. • Land (operational and restricted) – Is measured at fair value, and buildings (operational and restricted) and infrastructural assets (except land under roads) are measured at fair value less accumulated depreciation.

All other operational and restricted asset classes are measured at cost less accumulated depreciation and impairment losses.

REVALUATION Land and buildings (operational and restricted) and infrastructural assets (except land under roads) are revalued annually.

Revaluations of property, plant and equipment are accounted for on a class-of-asset basis.

The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class-of-asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed and then recognised in other comprehensive revenue and expense.

ADDITIONS The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Council and group and the cost of the item can be measured reliably.

Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

DISPOSALS Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds.

271 SUBSEQUENT COSTS Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably.

The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred.

DEPRECIATION Property, plant and equipment depreciation is provided on a straight line (SL) or diminishing value (DV) basis at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives.

Infrastructure asset depreciation rates are based on the remaining useful life for each individual asset component. These rates are on a straight line basis.

The revaluation approach, useful lives and associated depreciation rates of major classes of assets have been estimated as per the next page.

For depreciated assets the residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

Any work undertaken on infrastructure assets to reinstate (termed “renewal”) or add to the service potential of the asset is capitalised.

The useful lives and associated depreciation rates of major classes of assets have been estimated as per the following table:

272 USEFUL LIVES AND DEPRECIATION RATES

Property, Plant and Equipment Measurement Basis (*1) Estimated Life Depreciation Rate

Buildings (Excluding Investment Property) RAD 10 – 100 Years 1 - 20% SL

Other Improvements CAD 10 – 100 Years 1 – 17.5% SL

Computer Equipment CAD 2.5 Years 40% DV Office Equipment, Furniture and Fittings CAD 5 Years 20% DV Library Books CAD 10 Years 10% SL Plant and Vehicles CAD 3.33 – 10 Years 5 – 25% SL Roads and Footpaths Measurement Basis (*1) Estimated Life Depreciation Rate

Top Surface (Seal) RAD 15 Years 6.67% SL Pavement (Base Course) RAD 100 Years 1% SL Culverts RAD 70 – 100 Years 1 – 1.43% SL Footpaths RAD 20 – 80 Years 1.25 – 5% SL Kerbs RAD 80 – 100 Years 1 – 1.25% SL Signs RAD 10 Years 10 – 11.1% SL Street Lights RAD 20 – 25 Years 4 – 5% SL Bridges RAD 70 – 100 Years 1 – 2.77% SL Water Supply Measurement Basis (*1) Estimated Life Depreciation Rate Pipes RAD 50 – 100 Years 1 – 2% SL Valves and Hydrants RAD 15 – 70 Years 1 – 6.67% SL Pump Stations RAD 10 – 60 Years 1.25 – 10% SL Tanks RAD 25 – 80 Years 1 – 6.67% SL Treatment Plants RAD 5 – 104 Years 0.96% – 20% SL Wastewater Measurement Basis (*1) Estimated Life Depreciation Rate Pipes RAD 50 – 100 Years 1 – 2% SL Manholes and Cesspits RAD 50 – 75 Years 1.33 – 4% SL Pump Stations RAD 10 – 60 Years 0.88 – 33.3% SL Treatment Plants RAD 10 – 200 Years 0.5 – 33.3% SL Stormwater Measurement Basis (*1) Estimated Life Depreciation Rate Pipes RAD 40 – 100 Years 1 – 50% SL Manholes and Cesspits RAD 75 Years 1.33 – 20% SL Solid Waste Measurement Basis (*1) Estimated Life Depreciation Rate Various RAD 20 – 75 Years 1.33 - 6% SL Other (Not Depreciated) Measurement Basis (*1) Estimated Life Depreciation Rate Land REV Formation Costs for Roading COST Stop Banks REV Work In Progress and Assets Under COST Construction *1 CAD = Cost Less Accumulated Depreciation And Impairment Losses. RAD = Revaluation Less Subsequent Depreciation. REV = Revaluation (Not Depreciated). COST = Cost.

273 INTANGIBLE ASSETS

SOFTWARE ACQUISITION AND DEVELOPMENT Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.

Costs that are directly associated with the development of software for internal use are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised in the surplus or deficit when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and maintenance of the Council’s website are recognised as an expense when incurred.

AMORTISATION The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and amortisation rates have been estimated as follows:

Amortisation Rates Intangibles Estimated Life Amortisation Rate Computer Software 3 years 33.3% SL Pipiriki Wastewater Treatment Plant Resource Consent 22 years 5% SL

IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment.

Property, plant and equipment and intangible assets subsequently measured at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

If an asset’s carrying amount exceeds its recoverable amount, the asset is regarded as impaired and the carrying amount is written-down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit.

VALUE IN USE FOR NON-CASH-GENERATING ASSETS Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. For non-cash generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

INVESTMENT PROPERTY

Properties leased to third parties under operating leases are classified as investment property unless the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation. Investment property is measured initially at its cost, including transaction costs.

After initial recognition, all investment property is measured at fair value at each reporting date. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit.

274 PAYABLES

Short-term creditors and other payables are recorded at their face value.

BORROWINGS

Borrowings are initially recognised at their fair value plus transaction costs. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.

Borrowings are classified as current liabilities unless the Council or group has an unconditional right to defer settlement of the liability for at least 12 months after balance date.

EMPLOYMENT ENTITLEMENTS

SHORT-TERM EMPLOYEE ENTITLEMENTS Employee benefits expected to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date.

A liability and an expense are recognised for bonuses where the Council or group has a contractual obligation or where there is a past practice that has created a constructive obligation.

The Council expects all employee entitlements to be settled within 12 months of balance date.

SUPERANNUATION SCHEMES

DEFINED CONTRIBUTION SCHEMES Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit when incurred.

PROVISIONS

A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.

EQUITY

Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into the following components: • Accumulated funds; • Restricted reserves; • Asset revaluation reserve; • Fair value through other comprehensive revenue and expense reserve.

RESTRICTED RESERVES Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by the Council.

275 Restricted reserves include those subject to specific conditions accepted as binding by the Council and which may not be revised by the Council without reference to the Courts or a third party. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met.

Also included in restricted reserves are reserves restricted by Council decision. The Council may alter them without reference to any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council.

ASSET REVALUATION RESERVE This reserve relates to the revaluation of property, plant and equipment to fair value.

FAIR VALUE THROUGH OTHER COMPREHENSIVE REVENUE AND EXPENSE RESERVE This reserve comprises the cumulative net change in the fair value of assets classified as fair value through other comprehensive revenue and expense.

GOODS AND SERVICES TAX

All items in the financial statements are stated exclusive of GST, except for receivables and payables. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the IRD is included as part of receivables or payables in the statement of financial position.

The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.

COST ALLOCATION

The cost of service for each significant activity of the Council has been derived using the cost allocation system outlined below: • Direct costs are those costs directly attributable to a significant activity. • Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific significant activity.

Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as staff numbers and size of budgets.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

In preparing these prospective financial statements, estimates and assumptions have been made concerning the future.

These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities over the Long Term Plan period, are discussed in the following policies and strategies which form part of this document: • Financial Strategy • Infrastructure Strategy • Revenue and Financing Policy

CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES

Management has exercised the following critical judgements in applying accounting policies for these prospective financial results.

276 CLASSIFICATION OF PROPERTY The Council owns a number of properties held to provide social housing. The receipt of market-based rental from these properties is incidental to holding them. The properties are held for service delivery objectives as part of the Council’s social housing policy. The properties are therefore classified as property, plant and equipment rather than as investment properties.

Parcels of land held for an undetermined future use that are classified as Investment Property may be re- classified in the future if the land use changes.

Taumarunui Airport and Ohakune Railway station are held for strategic reasons rather than for generation of revenue and are therefore classified as property, plant and equipment rather than as investment property.

277 STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Revenue Rates 24,329 25,526 27,721 28,573 29,924 31,258 32,721 33,829 34,848 35,879 36,886 Subsidies and grants 16,573 25,036 15,704 14,964 15,112 15,494 16,024 17,177 16,971 17,497 18,131 Other Revenue 3,897 3,373 3,551 3,552 3,681 3,880 3,921 4,036 4,233 4,279 4,395 Finance revenue 31 25 26 26 27 28 29 30 31 31 32 Total operating revenue 44,830 53,960 47,002 47,115 48,744 50,660 52,695 55,072 56,083 57,686 59,444

Expenditure Depreciation and amortisation expense 9,052 9,558 10,171 10,517 10,782 11,057 11,396 11,527 11,686 11,796 11,960 Personnel costs 5,745 6,378 6,519 6,675 6,835 6,999 7,153 7,317 7,478 7,650 7,834 Finance costs 920 640 931 1,052 1,368 1,809 2,202 2,497 2,770 3,040 3,373 Other expenses 21,656 23,153 24,739 24,841 26,427 27,344 28,226 29,137 30,068 30,891 31,631 Total operating expenditure 37,373 39,729 42,360 43,085 45,412 47,209 48,977 50,478 52,002 53,377 54,798

Operating surplus (deficit) before tax 7,457 14,231 4,642 4,030 3,332 3,451 3,718 4,594 4,081 4,309 4,646

Income Tax Expense ------Operating surplus (deficit) after tax 7,457 14,231 4,642 4,030 3,332 3,451 3,718 4,594 4,081 4,309 4,646

Other comprehensive revenue and

expense Items that could be reclassified to

surplus(deficit) Gain on revaluation of property, plant and 7,780 8,097 14,748 15,492 16,445 16,932 17,176 18,587 19,506 20,318 20,035 equipment Total other comprehensive revenue 7,780 8,097 14,748 15,492 16,445 16,932 17,176 18,587 19,506 20,318 20,035 and expense

Total comprehensive revenue and 15,237 22,328 19,390 19,522 19,777 20,383 20,894 23,181 23,587 24,627 24,681 expense

278 STATEMENT OF CHANGES IN NET ASSETS/ EQUITY Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Equity balance at 1 July 391,532 402,907 425,235 444,625 464,147 483,924 504,307 525,201 548,382 571,969 596,596 Comprehensive income for year 15,237 22,328 19,390 19,522 19,777 20,383 20,894 23,181 23,587 24,627 24,681 Equity Balance 30 June 406,769 425,235 444,625 464,147 483,924 504,307 525,201 548,382 571,969 596,596 621,277

Components of Equity Retained Earnings at 1 July 274,911 279,876 294,107 298,749 302,779 306,110 309,561 313,279 317,873 321,954 326,263 Net Surplus/(Deficit) 7,457 14,231 4,642 4,030 3,332 3,451 3,718 4,594 4,081 4,309 4,646 Retained earnings 30 June 282,368 294,107 298,749 302,779 306,111 309,561 313,279 317,873 321,954 326,263 330,909

Asset Revaluation Reserves at 1 July 116,621 123,031 131,128 145,876 161,368 177,814 194,746 211,922 230,509 250,015 270,333 Revaluation Gains 7,780 8,097 14,748 15,492 16,445 16,932 17,176 18,587 19,506 20,318 20,035 Revaluation Reserves 30 June 124,401 131,128 145,876 161,368 177,813 194,746 211,922 230,509 250,015 270,333 290,368

Special Funded Reserves at 1 July ------Transfers to / (from) reserves ------Council created Reserves 30 June ------

Trust Funds at 1 July ------Transfers to / (from) reserves ------Council created Reserves 30 June ------Equity at 30 June 406,769 425,235 444,625 464,147 483,924 504,307 525,201 548,382 571,969 596,596 621,277

279 STATEMENT OF FINANCIAL POSITION Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

ASSETS Current Assets Cash and cash equivalents 500 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 Debtors and other receivables 4,691 3,967 3,967 3,967 3,967 3,967 3,967 3,967 3,967 3,967 3,967 Prepayments & Accrued Income 985 1,015 1,015 1,015 1,015 1,015 1,015 1,015 1,015 1,015 1,015 Inventory 338 382 382 382 382 382 382 382 382 382 382 Investment Funds ------Total Current Assets 6,514 7,561 7,561 7,561 7,561 7,561 7,561 7,561 7,561 7,561 7,561

Non-Current Assets Plant, property and equipment 436,720 463,539 487,690 514,559 546,076 581,131 605,969 634,198 659,050 687,741 716,771 Intangible assets 222 877 877 877 877 877 877 877 877 877 877 Investment Property 3,162 3,636 3,741 3,853 3,971 4,097 4,225 4,366 4,517 4,677 4,835

Other financial assets Investment in CCOs and other similar 39 48 48 48 48 48 48 48 48 48 48 entities Other Financial Assets Term 712 741 741 741 741 741 741 741 741 741 741 Total Non-Current Assets 440,855 468,841 493,097 520,078 551,713 586,894 611,860 640,230 665,233 694,084 723,272

TOTAL ASSETS 447,369 476,402 500,658 527,639 559,274 594,455 619,421 647,791 672,794 701,645 730,833

LIABILITIES

Current Liabilities Creditors and other Payables 5,467 3,541 3,540 3,539 3,540 3,540 3,539 3,540 3,539 3,541 3,540 Employee entitlements 565 403 403 403 403 403 403 403 403 403 403 Income in advance 954 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 Borrowings 10,800 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Total Current Liabilities 17,786 14,779 14,778 14,777 14,778 14,778 14,777 14,778 14,777 14,779 14,778

Non-Current Liabilities

280

Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Provisions 194 199 199 199 199 199 199 199 199 199 199 Borrowings 22,621 36,190 40,951 48,298 60,038 74,709 78,653 83,700 84,966 89,030 93,380 Total Non-Current Liabilities 22,815 36,389 41,150 48,497 60,237 74,908 78,852 83,899 85,165 89,229 93,579

TOTAL LIABILITIES 40,601 51,168 55,928 63,274 75,015 89,686 93,629 98,677 99,942 104,008 108,357

EQUITY Retained Earnings 282,368 294,107 298,749 302,779 306,111 309,561 313,279 317,873 321,954 326,263 330,909 Asset Revaluation Reserves 124,401 131,128 145,876 161,368 177,813 194,746 211,922 230,509 250,015 270,333 290,368 Special Funded Reserves ------Trust Funds ------TOTAL EQUITY 406,769 425,235 444,625 464,147 483,924 504,307 525,201 548,382 571,969 596,596 621,277

281 PROSPECTIVE CASH FLOW STATEMENT Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Cash flows from operating activities Receipts from rates revenue 24,329 25,526 27,721 28,573 29,924 31,258 32,721 33,829 34,848 35,879 36,886 Receipts from other revenue 20,404 28,292 19,135 18,392 18,664 19,242 19,808 21,072 21,058 21,625 22,370 Interest received 31 25 26 26 27 28 29 30 31 31 32 Development Contributions 65 116 120 124 129 133 137 141 146 151 156 Payments to suppliers and employees (27,400) (29,531) (31,257) (31,515) (33,261) (34,344) (35,380) (36,455) (37,547) (38,542) (39,466) Interest paid (920) (640) (931) (1,052) (1,368) (1,809) (2,202) (2,497) (2,770) (3,040) (3,373) Net Cash flow from Operating Activity 16,509 23,788 14,814 14,548 14,115 14,508 15,113 16,120 15,766 16,104 16,605

Receipts from sale of property, plant and equipment ------Receipts from sale of investments ------Acquisition of investments ------Purchases of property, plant and (22,238) (38,978) (19,575) (21,893) (25,853) (29,180) (19,058) (21,169) (17,031) (20,170) (20,955) equipment ------Net Cash flow from Investing Activity (22,238) (38,978) (19,575) (21,893) (25,853) (29,180) (19,058) (21,169) (17,031) (20,170) (20,955) Cash flow from financing activities Proceeds from borrowings 5,729 15,190 4,761 7,345 11,738 14,672 3,945 5,049 1,265 4,066 4,350 Repayment of borrowings ------Net Cash flow from Financing Activity 5,729 15,190 4,761 7,345 11,738 14,672 3,945 5,049 1,265 4,066 4,350

Net Increase (Decrease) in Cash Held ------Add Opening Cash bought forward 500 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 Closing Cash Balance 500 2,197 2,197 2,199 2,199 2,196 2,196 2,195 2,198 2,196 2,197

Closing Balance made up of Cash and Cash Equivalents 500 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197 2,197

282 FUNDING IMPACT STATEMENT ALL OF COUNCIL Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP

Plan

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)

Sources of Operating Funding General rates, uniform annual general charge, rates 12,148 13,157 13,874 14,414 14,930 15,543 16,269 16,640 17,038 17,528 17,877 penalties Targeted rates 12,181 12,369 13,847 14,159 14,994 15,715 16,452 17,189 17,810 18,350 19,008 Subsidies and grants for operating purposes 5,516 7,079 7,179 6,952 7,766 8,008 8,254 8,510 8,774 9,046 9,317 Fees and charges 3,690 3,110 3,280 3,272 3,391 3,582 3,613 3,719 3,905 3,941 4,046 Interest and dividends from investments 31 25 26 26 27 28 29 30 31 31 32 Local authorities fuel tax, fines, infringement fees, and 141 146 151 156 161 166 171 176 182 187 193 other receipts Total Operating Funding (A) 33,707 35,886 38,357 38,979 41,269 43,042 44,788 46,264 47,740 49,083 50,473

Applications of Operating Funding Payments to staff and suppliers 27,401 29,531 31,257 31,516 33,263 34,343 35,379 36,453 37,547 38,541 39,465 Finance costs 920 640 931 1,052 1,368 1,809 2,202 2,497 2,770 3,040 3,373 Other operating funding applications ------Total applications of operating funding (B) 28,321 30,171 32,188 32,568 34,631 36,152 37,581 38,950 40,317 41,581 42,838

Surplus (deficit) of operating funding (A-B) 5,386 5,715 6,169 6,411 6,638 6,890 7,207 7,314 7,423 7,502 7,635

Sources of capital funding Subsidies and grants for capital expenditure 11,057 17,957 8,524 8,012 7,346 7,487 7,770 8,667 8,197 8,451 8,814 Development and financial contributions 65 116 120 124 129 133 137 141 146 151 156 Increase (decrease) in debt 5,729 15,190 4,761 7,347 11,740 14,671 3,944 5,047 1,266 4,065 4,350 Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 16,851 33,263 13,405 15,483 19,215 22,291 11,851 13,855 9,609 12,667 13,320

Applications of capital funding Capital expenditure - to meet additional demand 8,155 799 346 1,188 4,338 5,081 330 1,419 429 660 778

283 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP

Plan

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) - to improve the level of service 4,179 18,179 6,983 8,503 6,622 8,403 4,702 4,448 2,457 4,161 5,683 - to replace existing assets 9,903 20,000 12,245 12,203 14,893 15,697 14,026 15,302 14,146 15,348 14,494 Increase (decrease) in reserves ------Increase (decrease) of investments ------Total applications of capital funding (D) 22,237 38,978 19,574 21,894 25,853 29,181 19,058 21,169 17,032 20,169 20,955

Surplus (deficit) of capital funding (C-D) (5,386) (5,715) (6,169) (6,411) (6,638) (6,890) (7,207) (7,314) (7,423) (7,502) (7,635)

Funding Balance ((A-B)+(C-D)) ------

284 COST OF SUPPORT FUNDING IMPACT STATEMENT Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Sources of Operating Funding General rates, uniform annual general charges, rates 11 (2) (18) (37) (56) (76) (102) (127) (155) (186) (219) penalties Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges 165 147 152 58 60 62 63 65 67 69 71 Internal charges and overheads recovered 4,091 4,391 4,736 5,063 5,131 5,327 5,651 5,709 5,859 6,047 6,071 Local authorities fuel tax, fines, infringement fees, and 31 25 26 26 27 28 29 30 31 31 32 other receipts Total Operating Funding (A) 4,298 4,561 4,896 5,110 5,162 5,341 5,641 5,677 5,802 5,961 5,955

Applications of Operating Funding Payments to staff and suppliers 3,375 3,619 3,915 4,041 4,041 4,185 4,445 4,470 4,635 4,813 4,802

Finance costs 202 85 90 78 71 51 35 7 (23) (52) 62 Internal charges and overheads applied 130 139 141 143 146 148 151 154 158 161 165 Other operating funding applications ------Total applications of operating funding (B) 3,707 3,843 4,146 4,262 4,258 4,395 4,647 4,659 4,800 4,951 4,915

Surplus (deficit) of operating funding (A-B) 591 718 750 848 904 946 994 1,018 1,002 1,010 1,040

Sources of Capital Funding Subsidies and grants for capital expenditure ------Development and financial contributions ------increase (decrease) in debt (1,134) (401) (336) (890) (450) (781) (476) (980) (1,053) (809) (857) Gross proceeds from sale of assets ------Lump sum contributions ------Total sources of capital funding (C) (1,134) (401) (336) (890) (450) (781) (476) (980) (1,053) (809) (857)

Applications of Capital Funding Capital expenditure - to meet additional demand 208 ------to improve the level of service 117 231 912 426 381 426 611 36 37 147 136

285 Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) - to replace existing assets 544 558 522 507 459 560 569 577 556 701 692 Increase (decrease) in reserves (1,413) (472) (1,020) (975) (386) (821) (662) (575) (644) (647) (645) Increase (decrease) of investments ------Total applications of capital funding (D) (544) 317 414 (42) 454 165 518 38 (51) 201 183

Surplus (deficit) of capital funding (C-D) (591) (718) (750) (848) (904) (946) (994) (1,018) (1,002) (1,010) (1,040)

Funding Balance ((A-B)+(C-D)) ------

286 R ECONCILIATION TO FINANCIAL IMPACT STATEMENT TO COMPREHENSIVE INCOME Annual LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP Plan 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Income Prospective Statement of Comprehensive 44,830 53,960 47,002 47,115 48,744 50,660 52,695 55,072 56,083 57,686 59,444 Income

Summary Funding Impact Statement Total Operating Funding 33,708 35,886 38,357 38,979 41,269 43,042 44,788 46,264 47,740 49,083 50,473 Add Sources of Capital Funding Sources of capital funding 11,057 17,958 8,525 8,012 7,346 7,485 7,770 8,667 8,197 8,452 8,815 Development and financial contributions 65 116 120 124 129 133 137 141 146 151 156 Total Revenue 44,830 53,960 47,002 47,115 48,744 50,660 52,695 55,072 56,083 57,686 59,444

Expenditure Prospective Statement of Comprehensive

Income Operating Expenditure 37,373 39,729 42,360 43,085 45,412 47,209 48,977 50,478 52,002 53,377 54,798 Summary Funding Impact Statement Total applications of operating funding 28,321 30,171 32,189 32,568 34,630 36,152 37,581 38,951 40,316 41,581 42,838 Add Depreciation and Amortisation Expense 9,052 9,558 10,171 10,517 10,782 11,057 11,396 11,527 11,686 11,796 11,960 Total Expenditure 37,373 39,729 42,360 43,085 45,412 47,209 48,977 50,478 52,002 53,377 54,798

287 OTHER DISCLOSURES STATEMENT

LONG-TERM PLAN DISCLOSURE STATEMENT FOR PERIOD COMMENCING 1 JULY 2021 PURPOSE The purpose of this statement is to disclose Council’s planned financial performance in relation to various benchmarks to enable the assessment of whether the council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings. The council is required to include this statement in its long-term plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

RATES AFFORDABILITY BENCHMARK Council meets the rates affordability benchmark if— • its planned rates income equals or is less than each quantified limit on rates; and • its planned rates increases equal or are less than each quantified limit on rates increases.

RATES (INCOME) AFFORDABILITY The following graph compares Council’s planned rates with a quantified limit on rates contained in the financial strategy included in this long-term plan. The quantified limit is no more than Local Government Cost Index (LGCI) plus 2% - year on year

40000

35000

30000

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20000 $000's

15000

10000

5000

0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year

Quantified limit on rates income Proposed rates income (meets limit) Proposed rates income (exceeds limit)

RATES (INCREASES) AFFORDABILITY The following graph compares Council’s planned rates increases with a quantified limit on rates increases contained in the financial strategy included in this long-term plan. The quantified limit is no more than Local Government Cost Index (LGCI) plus 2% - year on year.

288 10.00% Forecast Rate increase % 9.00%

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% Increase 4.00%

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Quantified limit on rates increase Proposed rates increase (meets limit) Proposed rates increases (exceeds limit)

Note that after 2022 rates increases are likely to be subject to an Annual Plan.

289 DEBT LIMIT BENCHMARK

The council meets the debt affordability benchmark if its planned borrowing is within each quantified limit on borrowing.

The following graph compares Council’s planned debt with a quantified limit on borrowing contained in the financial strategy included in this long-term plan. The quantified limit is less than twice total annual rates bill.

120000 Debt Limit Benchmark ($000)

100000

80000

60000

40000 Less than 2X Total annual rates bill rates annual Total 2X than Less 20000

0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year

Quantified limit on debt Proposed debt (at or within limit) Benchmark not met

The main reason for this rise in debt is the need to carry out large projects to improve water and sewage treatment. In the final analysis, these may well attract Central Government subsidy. However, Council is not able to predict what future Governments will subsidise and so it has had to assume that subsides will not be forthcoming. Any subsidy received would lower the debt requirement.

Council does have the ability to service this debt within its debt servicing benchmark so it may be that Council chooses to incur the debt in the future. Council’s attitude to debt is set out in Section one of this strategy.

BALANCED BUDGET BENCHMARK

The following graph displays Council’s planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment) as a proportion of planned operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment).

Council meets the balanced budget benchmark if its planned revenue equals or is greater than its planned operating expenses.

290 160%

140% 136% 120% 120% 111% 109% 107% 107% 107% 109% 108% 108% 108% 100%

80%

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Revenue/operating expenditure (%) expenditure Revenue/operating 20%

0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year

Benchmark met Benchmark not met Benchmark

ESSENTIAL SERVICES BENCHMARK The following graph displays Council’s planned capital expenditure on network services as a proportion of expected depreciation on network services.

300% 261% 262% 250%

183% 195% 185% 200% 175% 171% 168% 165% 156% 155% 150%

100%

50% Capital expenditure/depreciation (%) expenditure/depreciation Capital

0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year

Benchmark met Benchmark not met Benchmark

Council meets the essential services benchmark if its planned capital expenditure on network services equals or is greater than expected depreciation on network services.

291 DEBT SERVICING BENCHMARK

The following graph displays Council’s planned borrowing costs as a proportion of planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment).

Because Statistics New Zealand projects Council’s population will grow more slowly than the national population is projected to grow, it meets the debt servicing benchmark if its planned borrowing costs equal or are less than 10% of its planned revenue.

12%

10%

8%

5.3% 6% 5.7% 4.9% 4.5% 4.2% 4% 3.6% 2.8% 2.1% 2.0% 2.2% Borrowing costs/revenue (%) costs/revenue Borrowing 2% 1.2%

0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year Benchmark met Benchmark not met Benchmark

292 ADDITIONAL INFORMATION OR COMMENT

[PART 1 FINANCIAL REPORTING: 5 INFORMATION TO BE DISCLOSED IN FINANCIAL STATEMENTS] The notes to a local authority’s financial statements must specify, in relation to each group of activities, the combined depreciation and amortisation expense for assets used directly in providing the group of activities. The below table shows RDC’s combined depreciation forecast expense for each activity’s asset base in delivering community services over the LTP 2021-31 period.

Activities of 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Grand Total Council Community $867,158 $925,474 $944,924 $973,434 $1,077,834 $1,164,234 $1,166,634 $1,183,034 $1,185,434 $1,187,834 $10,675,994 Facilities Community $138,760 $159,090 $163,673 $167,273 $161,240 $165,140 $165,540 $171,240 $171,920 $170,272 $1,634,148 Support Land Transport $526,4275 $5,356,114 $5,407,363 $5,451,536 $5,479,785 $5,518,171 $5,555,973 $5,589,384 $5,616,685 $5,643,986 $54,883,272 (Roading) Stormwater and Flood $380,146 $383,322 $405,084 $413,547 $417,738 $420,658 $425,450 $430,242 $433,033 $435,824 $4,145,044 Protection Cost of Support $718,492 $749,408 $840,425 $889,175 $921,592 $957,942 $971,692 $950,608 $950,192 $967,567 $8,917,093 Waste Management $23,004 $59,144 $63,727 $65,727 $65,727 $66,327 $64,527 $66,277 $66,610 $66,944 $608,014 and Minimisation Wastewater $908,450 $940,739 $944,527 $958,849 $971,094 $980,511 $981,765 $997,930 $1,000,874 $1,025,961 $9,710,700 (Sewerage) Water Supply $125,8116 $1,389,717 $1,406,041 $1,471,561 $1,506,294 $1,590,964 $1,611,335 $1,625,590 $1,627,390 $1,633,696 $15,120,704 Grand Total $9,558,401 $9,963,008 $10,175,765 $10,391,102 $10,601,304 10,863,947 $10,942,916 $11,014,305 $11,052,138 $11,132,084 $105,694,969

293 To the reader:

Independent Auditor’s report on Ruapehu District Council’s 2021-31 long-term plan

I am the Auditor-General’s appointed auditor for Ruapehu District Council (the Council). The Local Government Act 2002 (the Act) requires the Council’s long-term plan (plan) to include the information in Part 1 of Schedule 10 of the Act. Section 94 of the Act requires an audit report on the Council’s plan. Section 259C of the Act requires a report on disclosures made under certain regulations. I have carried out this work using the staff and resources of Audit New Zealand. We completed our report on 23 June 2021.

Opinion

In our opinion:

• the plan provides a reasonable basis for:

 long-term, integrated decision-making and co-ordination of the Council’s resources; and

 accountability of the Council to the community;

• the information and assumptions underlying the forecast information in the plan are reasonable; and

• the disclosures on pages 288 to 292 represent a complete list of the disclosures required by Part 2 of the Local Government (Financial Reporting and Prudence) Regulations 2014 (the Regulations) and accurately reflect the information drawn from the plan.

This opinion does not provide assurance that the forecasts in the plan will be achieved, because events do not always occur as expected and variations may be material. Nor does it guarantee the accuracy of the information in the plan.

Emphasis of Matters

Without modifying our opinion, we draw attention to the following disclosures.

Uncertainty over three waters reforms

Pages 97 and 222 outlines the Government’s intention to make three waters reform decisions during 2021. The effect that the reforms may have on three waters services provided is currently uncertain because no decisions have been made. The plan was prepared as if these services will continue to be provided by the Council, but future decisions may result in significant changes, which would affect the information on which the plan has been based.

294 The Council’s debt limit is forecast to be exceeded

Page 216 of the financial strategy outlines the Council’s debt limit which it has set based on borrowings being no more than twice the total annual rates bill for the period of the plan. Forecast debt is expected to grow to $100 million which will exceed the limit from year four of the plan. The Council notes that forecast debt is affordable (but not ideal) and that the Council has a number of opportunities to review its financial position, and may need to consider revising its debt limits in the next annual and long-term planning cycles.

Uncertainty over the delivery of the capital programme

Page 284 outlines that the Council is proposing to spend $234 million on capital projects over the next 10 years. Although the Council is taking steps to deliver its planned capital programme, as outlined on page 171, there is uncertainty over the delivery of the programme due to a number of factors, including the significant constraints in the construction market. If the Council is unable to deliver on a planned project, it could affect intended levels of service.

Basis of opinion

We carried out our work in accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised) Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. In meeting the requirements of this standard, we took into account particular elements of the Auditor-General’s Auditing Standards and the International Standard on Assurance Engagements 3400 The Examination of Prospective Financial Information that were consistent with those requirements.

We assessed the evidence the Council has to support the information and disclosures in the plan and the application of its policies and strategies to the forecast information in the plan. To select appropriate procedures, we assessed the risk of material misstatement and the Council’s systems and processes applying to the preparation of the plan.

Our procedures included assessing whether:

• the Council’s financial strategy, and the associated financial policies, support prudent financial management by the Council;

• the Council’s infrastructure strategy identifies the significant infrastructure issues that the Council is likely to face during the next 30 years;

• the Council’s forecasts to replace existing assets are consistent with its approach to replace its assets, and reasonably take into account the Council’s knowledge of the assets’ condition and performance;

• the information in the plan is based on materially complete and reliable information;

• the Council’s key plans and policies are reflected consistently and appropriately in the development of the forecast information;

295 • the assumptions set out in the plan are based on the best information currently available to the Council and provide a reasonable and supportable basis for the preparation of the forecast information;

• the forecast financial information has been properly prepared on the basis of the underlying information and the assumptions adopted, and complies with generally accepted accounting practice in New Zealand;

• the rationale for the Council’s activities is clearly presented and agreed levels of service are reflected throughout the plan;

• the levels of service and performance measures are reasonable estimates and reflect the main aspects of the Council’s intended service delivery and performance; and

• the relationship between the levels of service, performance measures, and forecast financial information has been adequately explained in the plan.

We did not evaluate the security and controls over the electronic publication of the plan.

Responsibilities of the Council and auditor

The Council is responsible for:

• meeting all legal requirements affecting its procedures, decisions, consultation, disclosures, and other actions relating to the preparation of the plan;

• presenting forecast financial information in accordance with generally accepted accounting practice in New Zealand; and

• having systems and processes in place to enable the preparation of a plan that is free from material misstatement.

We are responsible for expressing an independent opinion on the plan and the disclosures required by the Regulations, as required by sections 94 and 259C of the Act. We do not express an opinion on the merits of the plan’s policy content.

Independence and quality control

We have complied with the Auditor-General’s:

• independence and other ethical requirements, which incorporate the independence and ethical requirements of Professional and Ethical Standard 1 issued by the New Zealand Auditing and Assurance Standards Board; and

• quality control requirements, which incorporate the quality control requirements of Professional and Ethical Standard 3 (Amended) issued by the New Zealand Auditing and Assurance Standards Board.

296 Other than our work in carrying out all legally required external audits, we have no relationship with or interests in the Council or any of its subsidiaries.

Clarence Susan Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand

297